Grayscale Investments has amended its filing to convert its existing Bitcoin Trust into an exchange-traded fund (ETF) following a court ruling criticizing the SEC for rejecting Grayscale’s ETF proposal. Talks with the SEC and NYSE Arca have been positive, indicating a potential approval, especially with legal support from DavisPolk.
Key Updates:
Legal Support: DavisPolk has advocated for the ETF based on existing market surveillance mechanisms, similar to those used for Bitcoin futures ETFs, contributing to the positive trajectory.
Filing Details: Grayscale has amended its filing to convert the existing Bitcoin Trust into an ETF, with plans for a future ticker change from GBTC to BTC.
Market Interest: The broader market has shown strong interest in a Spot Bitcoin ETF, with Grayscale’s GBTC experiencing success and increased demand for products offering transparency and liquidity benefits.
Regulatory Landscape: Despite historical challenges, there is cautious optimism under SEC Chair Gary Gensler’s leadership, recognizing the potential for overcoming regulatory hurdles.
Potential Approval: Bloomberg suggests a high probability (90%) of ETF approval by January 10, reflecting the positive developments in discussions with regulatory bodies.
It’s worth noting that despite optimism, delays from other firms, such as Hashdex and Franklin Templeton, indicate the complexity of the regulatory landscape affecting the cryptocurrency market. The ongoing talks and potential approval could have significant implications for the integration of digital assets into mainstream finance.