Following a recent court ruling criticizing the U.S. Securities and Exchange Commission (SEC) for its rejection of Grayscale's Bitcoin exchange-traded fund (ETF) proposal, Grayscale Investments has amended its filing to convert its existing Bitcoin Trust into an ETF. The discussions with the SEC and NYSE Arca suggest a positive trajectory towards potential approval, buoyed by legal support from DavisPolk advocating for the ETF based on existing market surveillance mechanisms similar to those used for Bitcoin futures ETFs.
Bloomberg has highlighted key updates in the filing process, including a future planned ticker change from GBTC to BTC, although there is no immediate change to the current ticker symbol. This follows Grayscale's pursuit of converting GBTC into a Spot ETF on NYSE Arca, with a service agreement with BNY Mellon (NYSE:BK) enhancing their position.
The broader market has shown strong interest in a Spot Bitcoin ETF, as evidenced by the success of Grayscale's GBTC and the increased demand for products offering transparency and liquidity benefits. Despite historical regulatory challenges associated with market integrity, there is cautious optimism under SEC Chair Gary Gensler's leadership that these hurdles can be overcome. This sentiment is echoed by Finance Magnates' recognition of growing investor education efforts regarding digital assets' integration into mainstream finance.
In light of these developments, Bloomberg has expressed a high probability (90%) of an ETF approval by January 10. However, application delays from other firms such as Hashdex and Franklin Templeton illustrate the complex regulatory landscape still impacting the cryptocurrency market.
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