The SEC recently met with Greyscale Investments to discuss its bid to convert the Greyscale Bitcoin Trust.GBTC) to a place Bitcoin ETF.
According to a memo published by the SEC, the meeting took place between Greyscale principals, including CEO Michael Sonnenschein and CFO Ed Magee, and officials from the SEC's Division of Trading and Markets. It concerns “NYSE Arca, Inc.'s proposed rule change to list and trade shares of Greyscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.”
In the year In October 2023, a US appeals court ordered the SEC to review Greyscale's spot Bitcoin ETF application, after the digital asset manager sued the regulator for not allowing GBTC to convert to a Bitcoin ETF. The firm argued that the SEC judgment was “arbitrary and outrageous” in light of the acceptance of similarly structured Bitcoin futures ETF products – a review with which the court judges unanimously agreed in August.
At the time, the court stated that the SEC lacked a coherent explanation for its refusal to approve the conversion. “The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs, but not a grayscale proposal bitcoin ETP,” the court opinion said. “In the absence of a coherent explanation, this is illegal to treat as products other than controls.”
Grayscale filed an S-3 filing with the SEC in October 2023, noting in a blog post that it was eligible to use the shorter filing instead of the S-1 form, saying “its shares have been registered under the Securities Exchange Act since 1934.” January 2020 and meets the other requirements of the form. The asset manager also stated that it is ready to operate “as an ETF” upon receipt of regulatory approvals, including the NYSE Arca 19b-4 application, exemption or other Regulation M relief, and an S-3 form declared effective by the SEC. .
Grayscale intends to list GBTC on the NYSE Arca under the symbol GBTC, with Bank of New York Mellon acting as transfer agent for shares in the trust.
Bitcoin ETF competition
So far, the SEC has rejected all spot Bitcoin ETF applications, although the competition heated up earlier this year when BlackRock, the world's largest asset manager, submitted an application for a Bitcoin ETF. Earlier this month, the regulator's eight-day window to approve all pending ETF applications closed, with the SEC set to revisit them in the new year.
Bloomberg Intelligence and JP Morgan analysts estimate the SEC will approve the Bitcoin ETF position in early January.
Stay on top of crypto news, get daily updates in your inbox.
