Grayscale Pursues Bitcoin ETF Conversion, Prompted by Recent Court Ruling

Investment behemoth Grayscale has submitted a fresh filing to the U.S. Securities and Exchange Commission (SEC) as part of its persistent efforts to transform its Grayscale Bitcoin Trust into a Bitcoin ETF.

The Block reports that this move follows closely after the D.C. District Court’s decision, instructing the regulatory body to reevaluate Grayscale’s proposal.

Grayscale opted for the S-3 filing, a more concise alternative to the usual S-1 filing for proposing new shares. This occurs as other leading financial institutions, like BlackRock and Fidelity, are also in pursuit of the SEC’s nod for Bitcoin ETFs.

Grayscale clarified its eligibility to utilize Form S-3, given that since January 2020, its shares have been registered under the Securities Exchange Act of 1934, satisfying other necessary criteria.

GBTC plans to enlist its shares on NYSE Arca, bearing the GBTC (Grayscale Bitcoin Trust) ticker. They aim to consistently issue shares following the approval of NYSE Arca’s Form 19b-4 for listing and the successful registration of Form S-3.

Alongside Grayscale, BlackRock, another investment titan, updated its filing, probably echoing the feedback given by the SEC to Ark, Fidelity, and other firms. On Aug. 29, a national court endorsed Barry Silbert of Grayscale’s legal challenge against the SEC. This lawsuit, dated October 2021, was initiated when the SEC once more rejected Grayscale’s proposal to metamorphose its Bitcoin Trust into a Bitcoin ETF. The judiciary instructed a reevaluation of the SEC’s decision, annulling its initial ruling.

The court emphasized that fraudulent activities and market manipulations present equivalent threats in both futures and spot markets due to their strong interrelation, as highlighted in the report.

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