Grayscale Unveils Monotone Records for Debut of Novel Bitcoin ETF on NYSE Arca

Grayscale Investments has taken another step forward in its quest for a Bitcoin exchange-traded fund (ETF) after recent legal wrangling. The firm has submitted a fresh application to the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF pegged at $28,632.

On October 19, Grayscale presented an S-3 registration statement to the SEC, with the intention of listing Grayscale Bitcoin Trust shares on the New York Stock Exchange (NYSE) Arca under the ticker symbol GBTC.

This move is part of Grayscale’s ongoing efforts to transform its Grayscale Bitcoin Trust into a spot Bitcoin ETF, as detailed in the company’s statement. In their announcement, Grayscale emphasized their commitment to cooperating closely and swiftly with the SEC, serving the best interests of GBTC’s investors.

The recently filed S-3 registration statement is a streamlined version of the standard S-1 form used for the initial public offering of equity securities under the Securities Act.

Grayscale pointed out that GBTC qualifies for Form S-3 due to its SEC disclosures and reports, which have been in place since January 2020. This is in addition to meeting other necessary form requirements.

The firm clarified that once NYSE Arca’s 19b-4 application gains approval and the SEC declares the Form S-3 effective, Grayscale will be prepared to transition GBTC into an ETF and issue registered shares. The announcement highlighted GBTC’s readiness to function as an ETF upon receiving these regulatory nods, underscoring the company’s eagerness to work collaboratively with the SEC in this endeavor.

This development follows Grayscale’s legal victory in an SEC lawsuit regarding its spot Bitcoin ETF application. The U.S. Court of Appeals for the District of Columbia Circuit ordered the SEC to clarify its June 2023 rejection of Grayscale’s application. In September, Grayscale also filed with the SEC to list a futures ETF based on Ether at $1,564.

Grayscale is among several firms vying for SEC approval to launch a spot Bitcoin ETF, a group that includes industry heavyweights like ARK Investment, BlackRock, Fidelity, and others.

Notably, BlackRock, as reported by Bloomberg Intelligence analyst James Seyffart, submitted an updated Bitcoin ETF prospectus on October 19. Seyffart suggested that this filing is likely a response to SEC feedback, in line with the actions of companies such as ARK and Fidelity, indicating ongoing discussions between issuers and the SEC.