Grayscale Investments, a major cryptocurrency investment firm, has recently submitted an application to the United States Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) focused on Bitcoin (BTC).
On October 19th, Grayscale filed a registration statement using an S-3 form with the SEC. The objective is to list the shares of Grayscale Bitcoin Trust on the New York Stock Exchange (NYSE) Arca under the ticker symbol GBTC.
This new filing is in line with Grayscale’s ongoing efforts to convert its Grayscale Bitcoin Trust into a Bitcoin ETF, as stated by the company. Grayscale expressed their commitment to working closely and promptly with the SEC on behalf of GBTC’s investors.
The latest S-3 registration statement is a condensed version of the typical S-1 form, which is usually used for the initial public offering of equity securities under the Securities Act. Grayscale clarified that GBTC is eligible to use the shorter S-3 form because its shares have been registered under the Securities Exchange Act of 1934 since January 2020 and it fulfills the other requirements of the form.
Grayscale explained that once the NYSE Arca’s 19b-4 application is approved and the SEC declares the effectiveness of the Form S-3, they will be able to convert GBTC into an ETF and issue shares on a registered basis. Grayscale emphasized that GBTC is ready to operate as an ETF once it receives these regulatory approvals, and they eagerly anticipate collaborating with the SEC on these matters for the benefit of GBTC’s investors.
This news follows Grayscale’s recent victory in an SEC lawsuit related to its Bitcoin ETF review. The U.S. Court of Appeals for the District of Columbia Circuit ordered the SEC to provide an explanation for rejecting Grayscale’s application in June 2023. In September, the company also filed with the SEC to list an Ether (ETH) futures ETF.
Grayscale is one of several companies, including ARK Investment, BlackRock, and Fidelity, that are seeking approval from the SEC to launch a Bitcoin ETF. According to Bloomberg Intelligence analyst James Seyffart, BlackRock also filed an updated Bitcoin ETF prospectus on October 19th, likely in response to SEC comments similar to those made by Ark, Fidelity, and other companies. This filing further confirms that issuers are engaged in discussions with the SEC.