Spot Bitcoin ETF: Grayscale Investments Submits New S-3 Amendment

Grayscale Investments, is resetting its focus in line with the pursuit of its spot Bitcoin ETF product with the latest S-3 amendment filed with the United States Securities and Exchange Commission (SEC). One unique change riding on the comment from the market regulator is to explicitly state the associated risks in the case of bankruptcy of one of the firm’s Bitcoin-allied partners.

Spot Bitcoin ETF Comes With Risks

Even though Grayscale Investments runs the largest Bitcoin Trust in the world, the SEC wants proper attention paid to all forms of mishaps that potential investors need to beware of. The firm has, in light of this, expanded its risk disclosures to include the incidence of its partners failing to discharge their duties as required.

“In the event that one or more Authorized Participants having substantial interests in Shares or otherwise responsible for a significant portion of the Shares’ daily trading volume on NYSE Arca terminates its Participant Agreement, the liquidity of the Shares would likely decrease, which could adversely affect the value of the Shares,” the Grayscale’s latest S-3 filing reads.

Besides this, Grayscale also noted that if its most trusted liquidity engagers refuse to inject the liquidity for one reason or the other, this may ultimately impact the value of the Shares.

Grayscale played a crucial role in getting the spot Bitcoin ETF race to this finish line after it sued and won the SEC in court when the regulator first denied its request to convert the GBTC product to Bitcoin ETF. 

The firm has even shown more readiness to hit the market with the resignation of its Chairman Barry Silbert to prevent any form of conflict of interest.

Major Applicants Updates S-1 Filings

While Grayscale Investments have doggedly stretched to release an updated S-3 filing, other competitors like BlackRock and VanEck have also made related moves.

Notably, the majority of applicants are positioning themselves to outrank their peers as it relates to fee changes, and while Grayscale’s 1.5% proposed fee rate is a concern to experts and observers, the firm has a first-move advantage with an already large GBTC client base it could leverage.

The general consensus from bullish analysts remains that a spot Bitcoin ETF approval is still feasible this week, a position that has boosted Bitcoin’s sentiment triggering a surge toward the $47,000 price mark.