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Grayscale Files New Spot Bitcoin ETF Prospectus Following SEC Meeting

2 mins
Updated by Ryan Boltman
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In Brief

  • Grayscale has submitted a new prospectus for its plans to convert its Bitcoin Trust into a spot Bitcoin ETF after meeting with the SEC.
  • The firm's executives and legal representatives met with the SEC to discuss the product and revealed a service agreement with BNY Mellon.
  • Bloomberg analysts have raised their Bitcoin spot ETF approval odds to 90% by January, despite the SEC's continued delay tactics.
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Crypto asset manager Grayscale is pushing ahead with its plans to convert its popular Bitcoin Trust into a spot Bitcoin exchange-traded fund. After a meeting with the Securities and Exchange Commission this week, the firm has filed a new prospectus. 

On Nov. 22, Grayscale filed a new preliminary prospectus for its plans to convert the GBTC fund into a spot ETF. 

Grayscale’s New Prospectus

As noted by Bloomberg Intelligence ETF expert James Seyffart, the biggest update is the plan to change GBTC’s ticker to BTC. However, he later added that they are not actually filing to list as BTC. 

Grayscale does have a filing for their Global Composite Bitcoin ETF that’s registered with the BTC ticker. Nevertheless, that may not be launched if the conversion from GBTC is approved.

Screenshot from Grayscale prospectus. Source: X/@JSeyff
Screenshot from Grayscale prospectus. Source: X/@JSeyff

The analyst said he’s had a lot of questions about the current flurry of spot-ETF applications, responding: 

“Haven’t read through all of it but its just more data point confirming that Grayscale is in talks with SEC and is making updates/changes to their offering docs after discussions with and feedback from the SEC.”

In general, Grayscale has shortened this particular filing with a few amendments to the risk factors and disclosures. 

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

More significantly, Grayscale executives and legal representatives met with the SEC earlier this week to discuss the product

An SEC memo on the meeting revealed discussions concerned “NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust under NYSE Arca Rule 8.201-E.”

Grayscale revealed that it had entered a transfer agency and service agreement with BNY Mellon. Furthermore, America’s oldest bank will act as the transfer agent for GBTC. Its duties will include facilitating the issuance and redemption of shares, communications, and maintaining shareholder accounts.

Spot Bitcoin ETF Odds Increasing 

ETF Store President Nate Geraci said the most substantive aspect of Grayscale’s SEC meeting is that GBTC “conversion” is being referred to as an “uplisting”. He added: 

“If Grayscale is able to uplist GBTC to NYSE Arca on the same day other issuers launch spot BTC ETFs, and they make a concerted effort to compete on fees, they have a real shot of dominating this ETF category even with BlackRock in mix.”

Additionally, Grayscale already has more than $20 billion in assets under management for the product, whereas its competitors will start from scratch. 

Bloomberg analysts have increased their Bitcoin spot ETF approval odds to 90% by January. However, the SEC continues to play its procrastination and delay tactics

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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