Ahead of tomorrow’s crucial court mandate on spot Bitcoin ETF approval, Grayscale Investments has made a bold move as it submitted an S-3 filing with the SEC. This document represents a registration statement, submitted in Form S-3, aiming to register shares of the Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC) in accordance with the Securities Act of 1933, in its current amended version (referred to as the “Securities Act”).
Grayscale Confirms Form S-3 Eligibility Through Compliance Since 2020
In its continuous effort to transform the Grayscale Bitcoin Trust into a spot Bitcoin ETF, Grayscale Investments has recently registered a new statement with the Securities and Exchange Commission. This development follows a directive from a D.C. circuit court that the regulatory body reassess the company’s proposal.
On Thursday, Grayscale advanced its strategy by submitting a concise S-3 filing, commonly used for new share offerings, amid efforts by industry giants like BlackRock and Fidelity to secure SEC approval for their spot Bitcoin ETFs.
GBTC plans to register its shares on NYSE Arca, using the ticker GBTC, and will continually issue shares upon the approval of NYSE Arca’s Form 19b-4 application for listing and the activation of the Form S-3 registration for the shares.
Grayscale confirmed its eligibility to utilize Form S-3 for its submission, citing its shares’ registration under the Securities Exchange Act of 1934 since January 2020 and compliance with other requirements. This filing comes ahead of an anticipated court mandate from the U.S. Court of Appeals for the D.C. Circuit, expected tomorrow, which will essentially reinforce its preliminary decision from August, marking a conclusive step in the proceedings.
What To Expect From Tomorrow’s Hearing?
The absence of an appeal from the SEC regarding the court’s decision last week sparked industry-wide hope for an imminent spot Bitcoin ETF. Nonetheless, several steps remain before such a product enters the market.
So far, nine fund managers have submitted applications for spot Bitcoin Exchange Traded Funds (ETFs) to the US Securities and Exchange Commission (SEC). Grayscale has emerged as a leader, securing a significant legal triumph against the SEC in its effort to transition the Grayscale Bitcoin Trust into an ETF.
On October 20, Friday, the court that sided with Grayscale is set to deliver a mandate to the SEC, potentially compelling the regulator to respond following months of inaction on Bitcoin ETF applications.
The court’s upcoming decision will determine if the SEC must revisit Grayscale’s ETF application due to recent rulings, potentially avoiding a reapplication. This situation coincides with a sudden change in the SEC’s approach.
Ark Invest’s CEO, Cathie Woods, highlighted this in a CNBC interview, noting the regulator’s recent engagement with her company’s Bitcoin ETF application, a marked shift from their previous position.
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