The world’s largest digital asset manager, Grayscale Investments, is advancing towards converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF) after a court order directed the SEC to review its application, with the submission of an S-3 filing for new shares.
Grayscale stated, “GBTC, however, is eligible to use Form S-3, a shorter filing that incorporates by reference its SEC disclosures and reports, because its shares have been registered under the Securities Exchange Act of 1934 since January 2020 and it meets the other requirements of the form,”
This development aligns with other major asset managers, such as BlackRock and Fidelity, seeking SEC approval for their own spot Bitcoin ETFs. If approved, GBTC plans to list its shares on NYSE Arca under the symbol GBTC.
Grayscale stated, “Importantly, GBTC is ready to operate as an ETF upon receipt of these regulatory approvals, and on behalf of GBTC’s investors, Grayscale looks forward to working collaboratively and expeditiously with the SEC on these matters.”
While the SEC’s recent actions have raised hopes for a future spot Bitcoin ETF, there are still several steps to go through, and a final mandate from the U.S. Court of Appeals is expected.
Grayscale has been working to challenge the SEC’s previous rejection of its proposal and engage in discussions with regulators on this matter.
SEC Chair Gary Gensler has stressed the importance of a thorough process to protect investors while actively reviewing multiple ETF filings. In short, Grayscale is moving forward with its plan for a spot Bitcoin ETF, but there are more steps to complete before it becomes a reality.