Grayscale Updates its Filing For a Bitcoin ETF
Grayscale aims for early Bitcoin ETF approval by the SEC and adapts to a cash-only model. Key decision due by January 10th.
A big crypto asset firm, Grayscale, has recently submitted a new request to the U.S. SEC to change its Bitcoin Trust (GBTC) into a Bitcoin ETF, reported by Bloomberg's James Seyffart. The SEC had set a deadline of December 29th for final changes, and Grayscale made it in time, aiming for January 2024 approvals.
There’s been a major change in Grayscale's filing, They have agreed to a cash-only model, as the SEC required. This means ETFs can only deal in cash, not in-kind trades like stock ETFs. Experts believe that this could make buying shares more costly and even make the ETF inefficient. This move shows Grayscale’s readiness to adapt for early approval.
This is especially important since Grayscale won a court case against the SEC in August, where the SEC was asked to reconsider its earlier denial of Grayscale's ETF request. Now, a decision on Grayscale's application is expected by January 10th.
Since the court win, Grayscale's fund discount has shrunk. As per Coinglass, it fell to 5.51%, showing investors' growing confidence in GBTC. Coinglass expects this discount to close by early 2024.
