👉👉👉 #grayscale Amends #BitcoinETF Application, Excludes Authorized Participant Details
Grayscale, a prominent #cryptocurrency asset management firm, recently submitted an amendment to its registration statement with the U.S. Securities & Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). The filing, made on January 2, raised eyebrows due to its lack of details regarding authorized participants, a crucial aspect in ETF applications.
The amended application, labeled "amendment no. 3," primarily focused on submitting certain exhibits without indicating modifications to the prospectus. Notably, Grayscale outlined a cash-creating strategy, adhering to the SEC's ETF issuer requirements. In this strategy, Grayscale only deals with cash for shares, intending to use it to acquire & hold spot Bitcoin rather than handling actual bitcoins.
The filing skipped naming authorized participants for share purchase and trading, raising questions. Despite CEO Michael Sonnenshein mentioning a participant since 2017, the filing provided no specific details, leaving this crucial information blank.
This absence of a defined authorized participant raised concerns about its potential impact on Grayscale's SEC approval prospects. Eric Balchnas, a senior ETF analyst at Bloomberg, expressed uncertainty about the decision to omit this information, as the SEC typically requires such details in filings. Additionally, the filing lacked information about fees.
Unlike Grayscale, competitors like Fidelity, WisdomTree, & Invesco Galaxy disclosed authorized participants on December 29. The SEC's decision on Bitcoin ETFs is expected by January 10, with potential responses in the first week of 2024.
Anticipation is high for a Bitcoin ETF approval, especially with Grayscale's move to convert GBTC. The CEO's mysterious post hints at developments linked to the SEC decision. Grayscale's $26 billion in assets could reshape fees and liquidity for Bitcoin investors if approved.
Source - Hassan Shittu @hassan-shittu
Website - Cryptonews
