Grayscale, the digital asset management firm, has filed an amended S-3 filing with the United States Securities and Exchange Commission (SEC) following a recent leadership shuffle and the departure of Barry Silbert, the CEO of Grayscale’s parent company, Digital Currency Group. The filing indicates that Grayscale has reached a compromise with the SEC, agreeing to adhere to the demand for cash-only creation and redemption.
The amended filing comes after speculation that Silbert’s departure from Grayscale’s board could increase the chances of the firm successfully converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Some industry experts believe that Silbert’s resignation was a strategic move to improve the odds of an ETF approval, given the SEC’s ongoing investigation into Silbert and DCG.
Grayscale has made several revisions to its original 2018 filing, including changes to the fee collection method and the way assets are combined in an omnibus account. The SEC’s stance on cash-only orders poses a challenge for applicants seeking to launch a spot Bitcoin ETF, as most ETFs operate on an in-kind model. The SEC’s preference for cash transactions restricts the creation or redemption of new shares in a spot Bitcoin ETF.
Finance Lawyer Scott Johnson highlights the challenge arising from the SEC’s reluctance to approve amendments allowing in-kind processes. Despite the belief of broker-dealers and exchanges that compliance is feasible, the SEC remains unconvinced and is concerned about investor protection. Johnson argues that the SEC’s stance results in reduced safeguards and introduces uncertainty for investors.
Overall, Grayscale’s amended filing reflects the ongoing discussions and challenges faced by applicants and the SEC regarding the creation and redemption of shares in a spot Bitcoin ETF. The SEC’s preference for cash-only transactions raises concerns about investor protection and introduces a new layer of uncertainty for market participants.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Barry Silbert |
| Companies | Grayscale, Lumida Wealth, United States Securities and Exchange Commission, Cinneamhain Ventures, Digital Currency Group |
| Currencies | Bitcoin |
| Securities | None |
