Just-In: Grayscale Files for Bitcoin Adapters ETF

American crypto asset manager Grayscale Investments has pushed to list a new Bitcoin Adapters ETF product in the United States. According to its registration statement filed with the Securities and Exchange Commission (SEC), the new product will trade on NYSE Arca. It sets a new path for Grayscale as one of the key promoters of alternative crypto ETF products.

Grayscale Bitcoin Adapters ETF: a Strategic Move

The Grayscale Bitcoin Adapters ETF is new and will seek to track the shares of publicly listed companies with a Bitcoin treasury strategy. If approved, the ETF filing will hold these companies’ shares in weighted proportion. The ETF will represent an indirect exposure to Bitcoin via these companies’ shares.

According to the filing, the fund will hold at least 80% of its constituent shares. It confirmed that it may also invest in alternative securities that provide similar exposure to the underlying constituents. 

The Grayscale Bitcoin Adapters ETF will largely invest in US and non-US companies with a BTC exposure. The filing noted that the company must trade on a developed stock market to be eligible. It also placed a $100 million market capitalization benchmark for the firm, with a six-month average daily turnover of at least $1 million. 

Here’s the strategy details. Will be an equity ETF that holds the stock of companies that hold Bitcoin as a part of their corporate treasury. pic.twitter.com/KVgUw5BViP

— James Seyffart (@JSeyff) January 24, 2025

Grayscale confirmed that all securities to be included must have a free float. This must include at least 10% of their outstanding shares.

This ETF from Grayscale Investments is one of the few it has filed today. As reported by Coingape, Grayscale has also filed to list a Litecoin ETF with the US SEC. The asset manager is one of the key pioneers in the digital currency ecosystem.

Favorite Firms to Make the Grayscale ETF List

The most popular publicly traded firm with a Bitcoin exposure is business intelligence and software firm MicroStrategy. This firm acquired 11,000 BTC recently, now holding over 2% of the total Bitcoin supply, and generally borrows capital to fund its purchases.

Earlier, MicroStrategy announced a $1.05 billion BTC redemption for its convertible notes due in 2027. This underscores its active Bitcoin strategy, which complements the conditions Grayscale set for the Adapter ETF.

Other firms eligible for inclusion in the ETF include Riot platforms, Mara Holdings, Metaplanet, and KULR Technologies. Over the past few months, these firms have intensified their BTC acquisition strategies with the benefit of the share price.

All Eyes on the US SEC

The US SEC has received a lot of applications for ETF-related rule changes in the past few weeks. BlackRock filed for in-kind redemptions for IBIT – the iShares Bitcoin Trust, a move many believe was long due.

Beyond Bitcoin-linked ETF products, other cryptocurrencies, including XRP, Dogecoin, and Solana, have also bagged similar filings. The projection hinges on the positive shift at the US SEC under the Donald Trump administration.

With all eyes on Mark Uyeda and potentially Paul Atkins, it remains to be seen how the markets regulator will attend to these filings.