Grayscale Meets SEC’s Trading and Markets Division Over spot Bitcoin ETFs, What’s Next?

The world’s largest digital property supervisor Grayscale continues to push the envelope additional for getting its spot Bitcoin ETF again available in the market. On Tuesday, November 21, Grayscale engaged in discussions with the SEC and revealed the execution of a Switch Company and Service Settlement with BNY Mellon for its spot Bitcoin ETF.

Grayscale Meets the SEC

On November 20, a memo from the SEC revealed that Grayscale executives, together with CEO Michael Sonnenshein, held discussions with the SEC’s division of buying and selling and markets. The assembly targeted on the proposed rule change by NYSE Arca, Inc. to record and commerce shares of the Grayscale Bitcoin Belief (BTC) beneath NYSE Arca Rule 8.201-E.

Grayscale subsequently disclosed the execution of a Switch Company and Service Settlement with BNY Mellon, as per a submitting shared by Bloomberg ETF analyst James Seyffart. BNY Mellon will function the agent for Grayscale Bitcoin Belief (GBTC), managing the issuance and redemption of shares and overseeing shareholder accounts.

Scott identified the Switch Agent settlement with BNY Mellon in $GBTC‘s 8K at present as a result of he apparently has eyes all over the place. That mentioned, this settlement is probably going one thing that was all the time going to be required in some unspecified time in the future. Says nothing about timing IMO https://t.co/8eIYNMWzzw

— James Seyffart (@JSeyff) November 21, 2023

In a November 21 Twitter put up, Seyffart famous that the buying and selling and markets division is accountable for approving or denying 19b-4s—a kind used to tell the SEC of a proposed rule change by a self-regulatory group. He clarified that the settlement with BNY Mellon is probably going a requirement and doesn’t essentially point out an imminent conversion of GBTC.

The assembly with the SEC comes inside per week of the securities regulator delaying the decision on spot Bitcoin ETF additional.

When Is Bitcoin ETF Coming? Will Grayscale Dominate

James Seyffart shared his perspective on latest occasions, stating that regardless of inquiries, the percentages, together with Eric Balchunas, stay unchanged and can’t exceed 90% by January tenth. Nevertheless, Seyffart famous that, of their view, developments are nonetheless progressing positively.

However, crypto mother and SEC Commissioner Hester Pierce additionally shared her ideas on future developments. Talking with Bloomberg TV correspondent Sonali Basak, Pierce mentioned that “There’s no cause for us to face in the best way of Bitcoin ETF”.

She added that the Graysscale’s victory over the SEC for changing its GBTC product to a spot Bitcoin ETF gave them a little bit of a nudge to positively suppose on this path. Nevertheless, she remained tight-lipped over whether or not the SEC is contemplating approving all Bitcoin ETF purposes without delay.

Earlier @kaileyleinz & @sonalibasak requested SEC commissioner @HesterPeirce some nice questions on ongoing conversations on the SEC associated to identify #bitcoin ETFs. She largely could not reply them however she hinted that the @Grayscale courtroom case seemingly gave the SEC a little bit of a nudge pic.twitter.com/qBOvJW2SLY

— James Seyffart (@JSeyff) November 21, 2023

Grayscale stands a real likelihood to steer within the ETF sector if it will probably efficiently switch GBTC to NYSE Arca concurrently with different issuers launching spot BTC ETFs. This, coupled with a targeted technique to compete on charges, may place Grayscale for dominance, in accordance with ETF Retailer President Nate Geraci.

Geraci talked about that Grayscale is poised to enter the market with $20 billion in property beneath administration from day one, even with the presence of BlackRock. Bloomberg expects the Bitcoin ETF market, to be a $100 billion market. Thus, Grayscale may very well be having a lion’s share on this.