Grayscale’s advancement in the bitcoin ETF bid marks a significant procedural milestone, showcasing the growing acceptance and potential mainstream adoption of cryptocurrency in traditional finance.
Grayscale Investments is making progress in its efforts to launch a spot bitcoin ETF after the Securities and Exchange Commission (SEC) decided not to appeal the company’s court win from August. The asset manager has filed a new document with the SEC to initiate discussions with another division of the commission as the lawsuit comes to a close. The DC Circuit Court of Appeals previously ruled that the SEC’s denial of Grayscale’s conversion to an ETF, while allowing bitcoin futures ETFs, was arbitrary and capricious. The SEC did not challenge this decision, and the industry now awaits a final mandate by the court. In the meantime, Grayscale has filed with the SEC to register shares of its Grayscale Bitcoin Trust (GBTC) under the Securities Act of 1933. This filing is a step towards converting GBTC to an ETF, a possibility that industry experts believe became more likely after the Court of Appeals’ ruling. However, there are still several regulatory approvals and relief that Grayscale needs to obtain before the conversion can occur. The SEC’s division of trading and markets reviews the 19b-4 filing, while the division of corporation finance reviews the S-1 and S-3 filings. Grayscale expressed its readiness to operate as an ETF upon receiving these approvals and looks forward to working with the SEC on these matters.