Just-In: Grayscale Updates Spot Bitcoin ETF Filing With US SEC

Varinder Singh
November 23, 2023 Updated November 24, 2023
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Crypto asset manager Grayscale Investments has submitted a revised spot Bitcoin ETF filing after recent discussions with the U.S. Securities and Exchange Commission (SEC). The spot Bitcoin ETF issuers including BlackRock and the SEC are undergoing constructive talks, with firms looking to approve a spot Bitcoin ETF first in the United States.

Meanwhile, BTC price continues to hold above $37,000, with trading volume also moving to lower side.

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Grayscale Submits Revised Spot Bitcoin ETF Prospectus

According to a filing with the U.S. Securities and Exchange Commission (SEC) late November 22, Grayscale submitted an S-3 form for spot Bitcoin ETF filing, seeking to convert GBTC.

The move comes after a meeting between the SEC’s Division of Trading and Markets and Grayscale. Grayscale executives, including CEO Michael Sonnenshein, discussed the proposed rule change by NYSE Arca to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.

After a judge asked the SEC to reconsider Grayscale’s requests to convert its Bitcoin trust to a spot Bitcoin ETF, constructive discussions happened to approve a spot Bitcoin ETF, the first in the United States. Meanwhile, other giants such as BlackRock and Fidelity are also in the race to approve its spot Bitcoin ETF first.

Also Read: Court Denies Sam Bankman-Fried’s Appeal for Release

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Here’s What Is Changed in the Filing

Bloomberg analyst James Seyffart said Grayscale made big changes in this amendment compared to the original filing. He noted that the application shortened a line related to cash orders and removed pages of risk disclosures.

“Looks like they are shortening up this particular filing and telling people they can just view the risk factors in the 10-ks, 8-ks ,and 10-Q’s they already file/filed. No reason to duplicate in the S-3’s i guess?”

The SEC seeks Bitcoin ETF issuers to use cash creates as opposed to crypto as broker dealers cannot deal in Bitcoin. However, Grayscale filing reads that “The redemptions of shares pursuant to cash orders will only take place if approved by the sponsor in writing, in its sole discretion.”

Commenting on the changes, finance lawyer Scott Johnsson said “Maintaining principally in-kind creation/redemption with a limited cash process. Some new risk factors, including matching the Ark/21 RF expanded disclosure of fraud & manipulation risk.”

BTC price continues to move in a range above $37,000, trading sideways in the last 24 hours. The price is still up 3% in a week.

Also Read: US Prosecutors Want Binance’s Changpeng Zhao to Remain In the US, What Follows?

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.