Grayscale Investments is advancing in its effort to convert its Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF), following a series of strategic moves and discussions with the U.S. Securities and Exchange Commission (SEC). The cryptocurrency asset manager engaged in talks with SEC staff on Sunday, focusing on the application of NYSE Arca Rule 8.201-E, a key step in the process.
On Monday, Grayscale announced a significant partnership with BNY Mellon (NYSE:BK) for operations related to GBTC, signaling further progress. This followed their October 19 S-3 Form Registration, which indicated plans to list GBTC on NYSE Arca, a potential precursor to the trust's transition to an ETF.
Amidst the competitive landscape with major asset managers like BlackRock (NYSE:BLK) and Fidelity also in the race for ETF approval, industry analysts have expressed optimism on social media about Grayscale's chances of SEC approval by January.
The SEC acknowledged these developments in a memo released today, pointing out the discussions with Grayscale concerning GBTC's listing under NYSE Arca Rule 8.201-E. This comes after Grayscale achieved a legal victory that required the SEC to reconsider their initial rejection of the spot ETF proposal. Grayscale has also challenged the SEC over what they perceive as unequal regulatory treatment compared to previously approved futures-based ETFs, which included surveillance agreements.
These latest developments represent a significant step forward for Grayscale and its efforts to offer investors a spot Bitcoin ETF, an investment product that could potentially provide more direct exposure to Bitcoin compared to futures-based alternatives. The partnership with BNY Mellon as transfer agent enhances the operational readiness of GBTC for potential uplisting and ETF conversion, marking another milestone in the evolving landscape of cryptocurrency investment vehicles.
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