Search
Search
Get the Inside Scoop on Grayscale's Bitcoin ETF Talks %%page%% %%sep%% %%sitename%%

Grayscale Investments’ Meeting with SEC: A Step Forward for Spot Bitcoin ETF

0
0

241 Listen to this article Grayscale Investments, a leading crypto asset manager, has recently made significant strides towards the potential […]

Latest News

Listen to this article

Grayscale Investments, a leading crypto asset manager, has recently made significant strides towards the potential listing of a spot Bitcoin exchange-traded fund (ETF). Here’s a detailed overview of their meeting with the U.S. Securities and Exchange Commission (SEC) and related developments:

Meeting Details

On November 20, Grayscale executives, including CEO Michael Sonnenshein, and legal representatives met with the SEC’s Division of Trading and Markets to discuss converting the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF​​​​.

Discussion Focus

The talks centered around the proposed rule change by NYSE Arca, Inc. for listing and trading shares of the Grayscale Bitcoin Trust under NYSE Arca Rule 8.201-E​​.

Transfer Agency Agreement

Grayscale has reached an agreement with the Bank of New York Mellon to act as the transfer agent for the trust’s shares, facilitating the issuance and redemption of shares and maintaining shareholder accounts​​​​.

Regulatory Process

The SEC’s Division of Trading and Markets, responsible for approving or denying Form 19b-4s (proposed rule changes by self-regulatory organizations), is key in this process. The agreement with BNY Mellon is seen as a necessary step, although it doesn’t guarantee immediate conversion of the GBTC to an ETF​​.

Potential Impact and Strategy

If Grayscale can successfully convert GBTC to an ETF and list it on NYSE Arca, it might dominate this ETF category, especially if it manages to compete effectively on fees. The firm reportedly has $20 billion in assets under management, positioning it strongly against other major players like BlackRock​​.

FAQs on Grayscale’s Meeting with the SEC

What is Grayscale’s goal in this meeting with the SEC?
Read Also:  Eclipse CEO Neel Somani Replaced Amid Sexual Misconduct Allegations

Grayscale aims to convert its Bitcoin Trust into a spot Bitcoin ETF, allowing for broader and more regulated investment opportunities in Bitcoin.

Why is the conversion to a spot Bitcoin ETF significant?

Converting to a spot Bitcoin ETF would provide investors with more direct exposure to Bitcoin’s price movements and potentially attract more institutional investment.

What role does BNY Mellon play in this process?

BNY Mellon is set to act as the transfer agent for Grayscale’s Bitcoin Trust, handling the issuance and redemption of shares and maintaining shareholder accounts.

Are there any indications of the SEC’s stance on this conversion?

While the SEC has been cautious and has postponed similar applications, the frequent discussions with entities like Grayscale might indicate a potential shift in regulatory stance​​.

What are the chances of Grayscale’s application being approved?

Analysts like James Seyffart from Bloomberg Intelligence suggest there’s a 90% likelihood of an ETF being approved by or before January 10, 2024, indicating strong optimism for Grayscale’s bid​

You Might Also Like

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
Bitcoin ETFs Surge as Investors Seek Exposure Coinbase, Andreessen Horowitz, and Ripple have joined forces to fund a new crypto DMM Bitcoin Hit by $305M Hack Ripple Releases 1 Billion XRP Tokens What to Expect from Bitcoin’s Price Rally in H2 2024 Trump’s MAGA Coin Soars 7% While Biden Parody Sinks Amid Ex-President’s Trial — NFTs Hold Steady Analyst Warns About Dogecoin Decline CME Denies Solana Futures Plans Amid Growing Rumors Can PEPE flip Polygon? Market cap race heats up! Why Bitcoin Price Is Down Today? Cristiano Ronaldo Launches 4th NFT Collection on Binance Amid $1B Lawsuit Coinbase Alleges SEC Dodging Howey Test in New Appeal Ethereum ETFs Granted Official Approval by SEC Crypto Whale Splurges $10.4 Million on Meme Coin PEPE SOL Price Nearing Support as On-Chain Activity Dips for Solana Penguiana Meme Coin’s Presale Achieves Success, Raising 290 SOL Solana to Bitcoin Bridge, Zeus Network, Set for Debut in Q3 2024 DeFi Lending Leader Aave Unveils V4 Protocol Overhaul MicroStrategy (MSTR) Incurs Losses in Q1 After Digital Asset Impairment Takes Toll Upbit Emerges as Top Five Crypto Exchange, Posing Challenge to Binance, Coinbase