Grayscale Investments has resolutely renewed its pursuit of a spot bitcoin ETF, filing a fresh registration statement with the Securities and Exchange Commission (SEC).
The asset manager’s determination was rekindled following a pivotal ruling by the D.C. Circuit Court, which directed the regulator to re-evaluate the firm’s application.
The S-3 Filing: A Strategic Move By Grayscale
On a brisk Thursday morning, Grayscale submitted an S-3 filing, a truncated version of the conventional S-1 filing typically employed to offer new shares. In justifying the use of Form S-3, Grayscale pointed to registering its claims under the Securities Exchange Act of 1934 since January 2020 and fulfilling other requisite conditions.
This strategic move by Grayscale aligns with the current trend among prominent asset managers, including BlackRock and Fidelity, who are also vying for the SEC’s approval to launch spot bitcoin ETFs.
Grayscale’s vision is to list the shares on NYSE Arca under the symbol GBTC, disseminating them continuously upon the consent of NYSE Arca’s application on Form 19b-4 and the effectiveness of Form S-3 for share registration, as per the company’s official statement.
Anticipated Court Mandate and SEC’s Outlook
The timing of Grayscale’s filing is intriguing, as it precedes the expected issuance of a court mandate by the U.S. Court of Appeals for the D.C. Circuit, which will essentially reiterate its initial ruling from August.
This act is perceived as the final chapter in this ongoing saga, especially since the SEC refrained from filing an appeal for a rehearing last week. This omission has sparked optimism within the industry, suggesting that a spot bitcoin ETF may soon be realized, although several procedural steps remain.
Grayscale’s legal battle with the SEC commenced last year after the regulator rejected its proposal to convert GBTC into a spot bitcoin ETF. The asset manager’s recent overture to meet with regulators demonstrates their eagerness to push for the conversion.
SEC Chair Gary Gensler’s recent comments suggest a busy regulatory landscape, with “eight or ten filings” currently under the agency’s scrutiny. As asset managers endeavor to take their products public, the SEC’s Division of Corporation Finance and Division of Trading and Markets play crucial roles in evaluating the proposals.
BlackRock’s updated Bitcoin ETF prospectus, filed on October 19, further reinforces the notion that multiple issuers are actively engaging with the SEC, potentially heralding a new era in the cryptocurrency market.
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