Following a recent court ruling that criticized the U.S. Securities and Exchange Commission (SEC) for rejecting Grayscale’s bitcoin exchange-traded fund (ETF) proposal, Grayscale Investments has amended its filing to convert its existing bitcoin trust into an ETF. Discussions with the SEC and NYSE Arca suggest a positive trajectory toward potential approval, bolstered by legal support from DavisPolk, which is advocating for the ETF to be based on existing market surveillance mechanisms similar to those used for bitcoin futures ETFs.
Bloomberg has highlighted key updates in the filing process, including a future planned ticker change from GBTC to BTC, although there will be no immediate change to the current ticker symbol. This follows Grayscale’s efforts to convert GBTC into a spot ETF on NYSE Arca, with a service agreement with BNY Mellon (NYSE:BK) strengthening their position.
The broader market has shown strong interest in a spot bitcoin ETF, as evidenced by the success of Grayscale’s GBTC and the increased demand for products that offer transparency and liquidity benefits. Despite historical regulatory challenges related to market integrity, there is cautious optimism under the leadership of SEC Chairman Gary Gensler that these hurdles can be overcome. This sentiment is echoed by Finance Magnates’ recognition of the growing efforts to educate investors about the integration of digital assets into mainstream finance.
In light of these developments, Bloomberg has expressed a high probability (90%) of an ETF approval by January 10th. However, application delays from other firms such as Hashdex and Franklin Templeton illustrate the complex regulatory landscape that continues to impact the cryptocurrency market.
