Executives at crypto asset manager Grayscale have met with the U.S. Securities and Exchange Commission to discuss details of its flagship Bitcoin (BTC) trust, which the company hopes to convert into a spot Bitcoin exchange-traded fund (ETF).
November. 20 seconds memorandum It was revealed that Grayscale CEO Michael Sonnenshein, legal director Craig Salm, ETF head Dave LaValle and four other senior executives, as well as five Davis Polk law firm representatives, met with the SEC’s trading and markets division.
The memo states that the discussions “relate to NYSE Arca, Inc.’s proposed rule changes to list and trade shares of Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.”
Grayscale detailed that it has entered into a transfer agency and servicing agreement with BNY Mellon, according to documents shared by Bloomberg ETF analyst James Seyffart.
The bank will act as agent for Grayscale Bitcoin Trust (GBTC), facilitating the issuance and redemption of shares and maintaining shareholder accounts.
November 21 (Twitter) postalSeyffart observed that the Division of Trading and Markets is responsible for approving or rejecting 19b-4s, a form used to notify the SEC of rule changes proposed by self-regulatory organizations.
Seyffart added that Grayscale’s agreement with BNY Mellon “will likely always be required at some point” and does not mean GBTC will be converted anytime soon.
Because it feels like everyone is asking. The events of the past few days have not changed my& @ericbalciunas‘ Odds. By January 10th, we will be no more than 90% progress. That said, we think things are continuing to move forward.
— James Seyff (@JSeyff) November 21, 2023
November. 22X postalETF Store President Nate Geraci believes that “the most substantive aspect of Grayscale’s SEC meeting yesterday was that GBTC’s ‘conversion’ was called an ‘upgrade.'”
“That doesn’t suggest there’s any problem with converting to ETFs,” he said.
Geraci added that if Grayscale can “upgrade GBTC to NYSE Arca on the same day as other issuers launching spot BTC ETFs,” and they make a concerted effort to compete on fees, it does have a chance to dominate this ETF category. status.
IMO, the most substantive aspect of yesterday’s Grayscale SEC meeting (and today’s subsequent 8k filing) is that the GBTC “conversion” is called an “upgrade”…
This does not indicate any problems with converting to ETFs (contrary to what follows). pic.twitter.com/nCZ8Z1ndNO
— Nate Geraci (@NateGeraci) November 22, 2023
Geraci said Grayscale will have $20 billion in assets under management on its first day in the market, even if BlackRock is among them.
related: U.S. court authorizes Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
Grayscale submitted a Form S-3 registration statement to the SEC on October 19, indicating its intention to list GBTC shares on NYSE Arca under the stock code GBTC.
In October, a U.S. appeals court authorized the SEC to review its decision to deny Grayscale’s request to convert GBTC into a spot ETF.
The company joins other major asset managers such as BlackRock and Fidelity in seeking SEC approval for a spot Bitcoin ETF.
Seyffart insisted that “things are continuing to move forward” and his odds of approval (a 90% chance the ETF will be approved on or before January 10, 2024) remain unchanged.
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