Key takeaways:
- Grayscale persists in efforts to reintroduce its spot Bitcoin ETF to the market.
- Grayscale discussed with the SEC and revealed a Transfer Agency Agreement with BNY Mellon for the ETF.
Grayscale Investments has taken another step in its quest to transform its Grayscale Bitcoin Trust into a spot bitcoin exchange-traded fund (ETF).
A recent meeting with the Securities and Exchange Commission (SEC) saw key executives, including CEO Michael Sonnenshein and Chief Legal Officer Craig Salm, discussing NYSE Arca’s proposed rule change related to listing and trading shares of the Grayscale Bitcoin Trust (BTC).
In a memo released by the SEC, details emerged about the discussions involving NYSE Arca Rule 8.201-E. Grayscale also revealed the establishment of a transfer agency and service agreement with BNY Mellon. This agreement positions BNY Mellon as the agent for Grayscale Bitcoin Trust (GBTC), responsible for facilitating share issuance and redemption, as well as managing shareholder accounts.
The journey towards a spot Bitcoin ETF faced a significant development in October 2023 when the U.S. Court of Appeals ordered the SEC to review Grayscale’s application. This followed Grayscale’s legal action against the SEC, challenging its refusal to allow the conversion of GBTC into a Bitcoin ETF.
The court sided with Grayscale, deeming the SEC’s judgment “arbitrary and capricious,” especially in comparison to its acceptance of similarly structured Bitcoin futures ETF products.
Bloomberg Intelligence Analyst James Seyffart noted that discussions with the SEC might indicate a potential regulatory shift, with rumors of other spot Bitcoin ETF issuers engaging in similar talks. SEC Commissioner Hester Pierce, colloquially known as “crypto mom,” also weighed in on the matter.
Pierce expressed a supportive stance, stating that there is no reason for the SEC to impede the progress of a Bitcoin ETF. Grayscale’s success in converting its GBTC product into a spot Bitcoin ETF seemed to influence positive sentiments within the SEC.
Despite this positive momentum, Pierce refrained from confirming whether the SEC is contemplating simultaneous approvals of all Bitcoin ETF applications.
The evolving landscape suggests ongoing developments and a potential shift in regulatory dynamics, as the industry eagerly awaits further updates on the approval of Bitcoin ETFs.
