Grayscale Investments is making substantial strides in the process of transforming its primary fund, the Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF. A memo from the U.S. Securities and Exchange Commission’s (SEC) special counsel, Edward Cho, revealed that senior Grayscale executives engaged in discussions with the SEC’s Division of Trading and Markets on Nov. 20.
The focal point of the meeting was NYSE Arca’s proposed rule change, aiming to list and trade GBTC shares under NYSE Arca Rule 8.201-E. Key figures attending the meeting included Grayscale CEO Michael Sonnenshein, CFO Edward McGee, and legal representatives from Davis Polk.
Former Davis Polk attorney and Van Buren Capital GP, Scott Johnsson, shared details of a filing indicating that Grayscale had entered a Transfer Agency and Service Agreement with BNY Mellon. Bloomberg ETF analyst James Seyffart clarified that while this agreement is a prerequisite for potential GBTC conversion into an ETF, it does not specify the timing of the ETF approval.
Grayscale making preparations pic.twitter.com/9A87FZK1su
— Scott Johnsson (@SGJohnsson) November 21, 2023
In a separate development, the SEC recently delayed its decision on spot Bitcoin ETF approvals from Global X and Franklin Templeton, continuing a trend around this topic. Despite the delays, optimism persists among market participants, particularly with influential players like BlackRock involved. Some ETF analysts estimate a 90% chance of spot Bitcoin ETF approval by January.
