It appears that the Securities and Exchange Commission (SEC) has been in talks with Grayscale Investment over its Bitcoin ETF application. According to a memo published by the SEC, some officials from the agency’s division of trading and markets met with the asset manager on Monday. Their discussions centered around potential listing matters of Grayscale’s BTC ETF.
Per the memo, “The discussion concerned NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.”
Grayscale Seeks an Ether ETF
Last month, the prominent digital asset management firm attempted to convert its existing Grayscale Ethereum Trust to a spot Ethereum spot ETF and went on to submit an application for the offering. The product will provide indirect exposure to Ether via futures contracts, into the spot ETF, which will then offer direct exposure to spot prices.
Notably, this was only a few week after Grayscale won against the SEC over its application for a spot Bitcoin ETF.
An appeal was expected from the regulator but when it wasn’t forthcoming, Grayscale began to push for the conversion of its GBTC to an ETF. With the mandate from the D.C. circuit court directing the agency to review Grayscale’s application, the SEC is left with no other option.
Spot BTC and ETH ETF to Transform Market Outlook
Meanwhile, BNY Mellon will serve as the transfer agent for shares of the trust based on an agreement between Grayscale and the Bank of New York Mellon. This decision to convert its GBTC to an ETF is significant for the broad market as it affords both institutional and retail investors the opportunity to safely take part in the bolstering crypto market which many regard as volatile.
At the same, it would also help Grayscale establish its position in the market which is becoming more competitive in recent times.
Candidates Amend Spot Bitcoin ETF Applications
The likes of WisdomTree have resubmitted an amended version of the spot BTC ETF application indicating that the Jonathan Steinberg-led ETF provider is also in close communication with the SEC. VanEck equally filed an amended spot Bitcoin ETF application with the SEC after adding that a seed capital investor acquired Seed Creation Baskets comprising 50,000 shares of the proposed ETF.
Approvals for the 12 spot Bitcoin ETF applications that have been made to the SEC so far are expected to start rolling in very soon.