Is Grayscale Nearing Spot Bitcoin ETF Approval By SEC?

The latest update into filing includes additional disclosure of risk factors relating to fraud and manipulation.

Last updated: November 23, 2023 12:04 PM

Published 2023-11-23

Last updated: November 23, 2023 12:04 PM

Published 2023-11-23

Grayscale filed an updated spot Bitcoin ETF application on November 22 following the discussion with the SEC with minimal amendments.

Bloomberg analyst, James Seyffart shared a post and noted that the new Grayscale has updated its S-3 filing on November 22, which seeks to convert Grayscale Bitcoin Trust into spot BTC ETF.

Lot of people asking what this means. Haven't read through all of it but its just more data point confirming that Grayscale is in talks with SEC and is making updates/changes to their offering docs after discussions with & feedback from the SEC. Looking for any other new info
— James Seyffart (@JSeyff) November 22, 2023

The latest update to the filing has come a day after the Grayscale team meeting with the SEC Division of Trading and Markets on November 20. The meeting is expected to have provided guidance and direction to the Grayscale team by the SEC regarding compliance on the spot Bitcoin ETF application ahead of its approval.

Seyffart noted that the application shortened a line related to cash orders and removed pages of risk disclosures.

A prominent finance lawyer, who also formerly worked with Davis Polk – the firm currently representing Grayscale – Scott Johnsson noted that the changes include some risk factors, relating to expanded disclosure of fraud and manipulation risk, which matches ARK Invest’s filing.

Surprisingly (or not) little meat here. Maintaining principally in-kind creation/redemption with a limited cash process. Some new risk factors, including matching the Ark/21 RF expanded disclosure of fraud & manipulation risk. https://t.co/cSoZcEP0jB
— Scott Johnsson (@SGJohnsson) November 22, 2023

Grayscale revisiting the filing suggests that its path to seek approval from the federal agency has come nearer, especially after both parties’ meetings and discussions.

Also Read: BlackRock in Talks with SEC on Bitcoin ETF??

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