Grayscale Submits Revised Form S-3 for Bitcoin ETF

The company has refiled with the United States Securities and Exchange Commission (SEC) to transform its existing Grayscale Bitcoin Trust (GBTC) asset into spot Bitcoin (BTC).

According to the updated Jan. 2 filing., the company has proposed a fiat currency redemption model for ETF shares. The SEC considers this redemption model, suggested by the company, as a safer option for investors compared to redemption in BTC.

However, Grayscale has not revealed the specifics of individuals or entities who will serve as their Authorized Participants, acting as guarantors for loan payments and repayments in case the fund faces difficulties in fulfilling these obligations.

Last week, following the resignation of Grayscale Investments chairman Barry Silbert, the company swiftly filed a corresponding application to convert GBTC into a spot Bitcoin ETF.

Even @Grayscale is accepting the SEC’s Cash-only creation/redemption edict. Looks like they’re bending the knee. pic.twitter.com/BtbyE5XQv0

— James Seyffart (@JSeyff) December 26, 2023

According to Bloomberg analyst Erich Balchunas, Grayscale’s revised Form S-3 has left several questions unanswered as the SEC mandates disclosure of their Authorized Participants. Currently, it’s only confirmed that the payouts will be in cash, not BTC.

Will the SEC approve a Bitcoin ETF?

Throughout the week, the cryptocurrency community has been engaged in discussions regarding the potential approval of spot Bitcoin. Earlier, we reported on rumours suggesting that the SEC may withhold approval on Jan. 2 or 3 due to extra scrutiny of new applications.

Additionally, analysts at Matrixport have forecasted the cryptocurrency’s surge to $50,000, coupled with a strong likelihood of approval for a Bitcoin ETF shortly. In response to these developments, the price of BTC has surpassed $45,000.

Nevertheless, scepticism is on the rise within the crypto market. Currently, analysts at Matrixport are leaning towards the belief that the SEC is less likely to approve the application for the Bitcoin ETF.

In the wake of this development, the BTC and altcoins experienced a sharp decline. At the time of writing, BTC has dropped to $42,282, with a temporary dip to $40,813 at one point.

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