• Grayscale, despite being one of the first few applicants for a spot Bitcoin ETF, was still unable to meet the SEC’s demand.
  • According to an updated filing, the asset manager has surrendered to the cash-only creation requirement.
  • On the other hand, Grayscale’s founder, Barry Silbert, resigned as Chairman without providing any reason.

Grayscale is inching closer to achieving its goal of converting its Bitcoin Trust (GBTC) into a spot BTC ETF. The asset manager has been continually holding meetings with the Securities and Exchange Commission (SEC) and updating its filing to meet the regulatory body’s demand, and by the looks of it, Grayscale could be nearing readiness to re-launch its investment product.

Grayscale and SEC meet eye-to-eye

The spot Bitcoin ETF race has many competitors and only one shot at taking the lead. The SEC will likely approve the first wave of ETFs on January 10, 2024, and those who do not adhere to the regulatory authority’s demands by December 29 might not make it in the first list of approvals, per the SEC’s recent declaration.

Grayscale, which is the primary catalyst in making these ETFs happen after winning the court’s ruling against the SEC’s denial of its application, finally seems to be winning the regulator’s approval as well. According to court documents, the asset manager seems to have filed an amended S-3 to convert its GBTC into a spot BTC ETF.

Per this filing, Grayscale seems to be adhering to the SEC’s order of cash-only creation/redemption. This edict was accepted by many other applicants as well in the past, making this the set standard for approval.

Bloomberg ETF analyst Eric Balchunas, in regard to this development, stated,

“Grayscale finally surrendering to cash-only creations, was a big holdout. Pretty sure they have an AP agreement (a crucial last step) so that would check all the boxes. That said, still a mystery whether they will be allowed to go on day one of the Cointucky Derby.

While approval may come at the same time for the applicants, the launch of the investment product may vary, which could be the deciding factor in absorbing the market’s bullishness.

Grayscale sees management change

Ahead of the spot BTC ETF approval, Grayscale is also undergoing some changes in the key management. Founder Barry Silbert resigned from his position as the Chairman of Grayscale on Tuesday, according to an SEC filing.

He is set to be replaced by Mark Shifke, the chief financial officer (CFO) of Silbert’s Digital Currency Group. The reason for this change in management was not specified by the filing or the company. However, Silbert was not alone; Mark Murphy, the president of Digital Currency Group, also stepped down from the board.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP