By
Chimamanda U. Martha
April 26th, 2024
The latest amendment makes it the third time Grayscale has updated its Bitcoin spot ETF application following the SEC’s directive to submit revised documents by December 29, 2023.
Grayscale Investments, a prominent asset management company in the United States, has recently updated its spot Bitcoin (BTC) ETF application with financial regulators in the country.
The crypto-focused asset manager amended its S-3 filing with the Securities and Exchange Commission (SEC) to convert its BTC trust (GBTC) into a spot bitcoin ETF, anticipating approval later this month.
However, the updated application lacks essential information, including the omission of authorized participants and other key details in similar applications. In this context, authorized participants are financial services companies or corporate institutions capable of creating and redeeming shares of an ETF upon its launch.
Missing Information Raises Concerns
On Tuesday, January 2, Eric Balchunass, a senior ETF analyst at Bloomberg, shared insights on Grayscale’s updated S-3 filing on X (formerly Twitter). He noted that the company left the space blank where the names of authorized participants should be listed.
Balchunass highlighted that the missing information is a crucial part of the mandatory disclosures requested by the securities watchdog before an application can be considered.
Furthermore, the analyst disclosed that Grayscale omitted information regarding its fees in the updated application.
New Grayscale amendment just dropped. Clear language on cash only but still no AP named, just blanks where name should go. Not sure why since SEC wants to see it and they have been pretty cocksure about having one. Also, nothing on fee (that I could see). That's big open q too. https://t.co/tQ9MTBlvg8 pic.twitter.com/id8Tb8ImaP
— Eric Balchunas (@EricBalchunas) January 2, 2024
The latest amendment makes it the third time Grayscale has updated its Bitcoin spot ETF application following the SEC’s directive to submit revised documents by December 29, 2023.
The company, along with other asset managers such as BlackRock, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd, Fidelity, WisdomTree Investments, and WisdomTree Investments, amended their various applications on Thursday and Friday before the SEC’s deadline.
SEC to Green Light Spot ETF Applications in January
Market experts familiar with the filing process suggest that companies submitting their revised applications before the deadline may launch their products on January 10, 2024.
Last year, Bloomberg analyst James Seyffart predicted the SEC would likely approve all 12 spot bitcoin ETFs submitted to the agency between January 5 and 10.
If approved, the move is expected to introduce new investment opportunities in the US market for institutional investors and drive BTC to new all-time highs before the Bitcoin Halving in April 2024.
ETF Approval to Unlock Opportunities
Apart from the expected increase in price for BTC, the Chicago Board Options Exchange (CBOE) recently disclosed that approval for the new product offerings could usher in a new wave of institutional investors into the crypto economy.
John Palmer, the president of CBOE Digital, stated in an interview with BloombergTV that the spot ETF approval could also unlock interest in Bitcoin derivatives and RIA-based funds.
Moreover, Palmer anticipates a substantial expansion in BTC derivatives products once a spot ETF receives potential approval from the financial authorities. According to him, institutional players are increasingly expected to rely on these derivatives to hedge risks.
During the interview, the CBOE Digital boss also said that the new investment products will pave the way for pension funds.
