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Coin Telegraph

This move seeks to better synchronize GBTC’s shares with the real Bitcoin price and introduce a streamlined mechanism for investors to create or redeem shares effortlessly.

Grayscale, a significant player in digital asset management, has expressed enthusiasm about the potential transformation of its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.

The company’s chief legal officer, Craig Salm and chief financial officer, Edward McGee, revealed the details.

ETF analyst Eric Balchunas from Bloomberg observed the notable dependence on Regulation M (Reg M) relief.

With Bitcoin (BTC) currently priced at $39,481 and a surge in trading volume indicating heightened trader interest, the prospect of a spot Bitcoin ETF ensures investors a more precise representation of Bitcoin’s value through GBTC and establishes a safer avenue for institutional investors to engage with Bitcoin.

In a Nov. 28 X (formerly Twitter) post, Bloomberg ETF analyst James Seyffart said the SEC delayed its decision on the applications 34 days earlier than the Jan. Seyffart and his colleague Eric Balchunas had placed 90% odds on spot Bitcoin ETF approvals by Jan.

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Cathie Wood’s ARK dumps 700K GBTC shares in one month

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Coin Telegraph

After selling nearly 700,000 GBTC shares over the past month, ARK’s Next Generation Internet ETF still holds 4.3 million GBTC shares worth $131.8 million.

Cathie Wood’s investment firm ARK Invest has sold 700,000 shares of the Grayscale Bitcoin Trust (GBTC) over the past month, even as Bitcoin (BTC) hit 17-month highs over excitement for a possible spot Bitcoin exchange-traded fund (ETF).

The ARK Next Generation Internet ETF (ARKW) sold 36,168 GBTC shares on Nov. 22, offloading a total of 697,768 GBTC since Oct. 23, according to ARK’s daily trading data seen by Cointelegraph.

ARKW offloaded roughly $1 million in GBTC as Grayscale’s trust traded around $30 on Nov. 22, closing at $30.50, per Google Finance data. United States markets closed on Nov. 23 for Thanksgiving.

*GBTC daily price on Nov. 22. Source: Google Finance*

ARK started selling Grayscale Bitcoin Trust shares on Oct. 23, 2023, as Bitcoin was reaching $34,000. Before that, ARK’s previous reported GBTC transaction was in November 2022, when the firm sold 450,272 GBTC shares.

After selling nearly 700,000 GBTC shares over the past month, ARK’s ARKW still holds $131.8 million worth of GBTC, or more than 4.3 million GBTC shares. As of Nov. 24, Grayscale Bitcoin Trust accounts for 9.2% of ARKW’s portfolio, ranked third after Coinbase and Roku, according to the official ARKW data.

*The ARK Next Generation Internet ETF’s top three holdings by weight. Source: ARK*

The ARK ETF that offloaded the funds is up over 68% year-to-date compared to the over 271% posted by Grayscale’s trust, per Google Finance data.

Meanwhile, Bitcoin is up 125% YTD and neared $38,000 on Nov. 16, the highest since May 2022, per Cointelegraph Markets Pro.

Additional reporting by Helen Partz.

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Grayscale met with SEC to discuss spot Bitcoin ETF details

November 22, 2023 Coin Telegraph

Bitcoin

Grayscale executives and lawyers met with the SEC to discuss a rule change to list the Grayscale Bitcoin Trust (GBTC).

Executives from crypto asset manager Grayscale have met with the Securities and Exchange Commission to discuss details of its flagship Bitcoin (BTC) trust, which the firm wants to convert to a spot Bitcoin exchange-traded fund (ETF).

A Nov. 20 SEC memo disclosed Grayscale CEO Michael Sonnenshein, legal chief Craig Salm, ETF head Dave LaValle and four other executives, along with five Davis Polk law firm representatives, met with the SEC’s division of trading and markets.

The memo said discussions “concerned NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.”

Grayscale detailed that it had entered a Transfer Agency and Service Agreement with BNY Mellon, according to a filing shared by Bloomberg ETF analyst James Seyffart.

The bank will act as the agent for its Grayscale Bitcoin Trust (GBTC), facilitating the issuance and redemption of shares and maintaining shareholder accounts.

In a Nov. 21 X (Twitter) post, Seyffart observed the trading and markets division is in charge of approving or denying 19b-4s — a form used to inform the SEC of a proposed rule change by a self-regulatory organization.

Seyffart added Grayscale’s agreement with BNY Mellon was “likely something that was always going to be required at some point” and isn’t an indicator that the GBTC will soon be converted.

Since it feels like everyone is asking. Events of the last few days haven’t changed my & @EricBalchunas’ odds. We can’t go any higher than 90% by Jan 10th. That said, things are continuing to move forward in our view.
— James Seyffart (@JSeyff) November 21, 2023

In a Nov. 22 X post, ETF Store President Nate Geraci opined the “most substantive aspect of Grayscale’s SEC meeting yesterday is that GBTC ‘conversion’ is being referred to as an ‘uplisting.’”

“That doesn’t indicate any issues with conversion to ETF,” he said.

Grayscale has a real shot of dominating this ETF category if it can “uplist GBTC to NYSE Arca on the same day other issuers launch spot BTC ETFs,” and they make a concerted effort to compete on fees, Geraci added.

IMO, most substantive aspect of Grayscale's SEC meeting yesterday (& today's subsequent 8k filing) is that GBTC "conversion" is being referred to as an "uplisting"...

That doesn't indicate any issues w/ conversion to ETF (contrary to the below). https://t.co/yAMBOsRlUs pic.twitter.com/nCZ8Z1ndNO
— Nate Geraci (@NateGeraci) November 22, 2023

Geraci said Grayscale will enter the markets on day one with $20 billion in assets under management, even with BlackRock in the mix.

Grayscale submitted an S-3 form registration statement with the SEC on Oct. 19, which showed its intention to list the shares of GBTC on the NYSE Arca under the ticker symbol GBTC.

In October, a U.S. appellate court issued a mandate for the SEC to review its decision to deny Grayscale’s bid to convert the GBTC to a spot ETF.

The firm is among other major asset managers, including BlackRock and Fidelity, seeking SEC approval for spot Bitcoin ETFs.

Seyffart maintained that “things are continuing to move forward” and his odds of approval — a 90% likelihood that an ETF is approved on or before Jan. 10, 2024 — remained the same.

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Spot Bitcoin ETF: Why this time is different

November 21, 2023 Coin Telegraph

Bitcoin Analysis

The latest Cointelegraph Report explains everything you need to know about a potential spot Bitcoin ETF approval in the U.S., its impact on the market, and its significance for the crypto industry.

A wave of optimism around the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States has ignited bullish price action in the crypto market in recent weeks.

But that could be just the beginning: If a spot Bitcoin ETF receives a greenlight by the U.S. Securities and Exchange Commission (SEC), it would mark a major milestone in the history of digital assets.

The spot Bitcoin ETF will provide institutional investors with a simple and regulated way to get exposure to Bitcoin with potentially explosive consequences for the Bitcoin market.

According to many analysts, a spot Bitcoin ETF could spark a demand shock that, coupled with next year's Bitcoin halving event, could spark the new crypto bull market.

The SEC has so far rejected all spot Bitcoin ETF applications, but two main factors make the current batch of applications different.

One is the involvement of BlackRock, the world's largest asset manager, which filed for a spot Bitcoin ETF earlier this year.

The second is the court ruling that required the SEC to revisit a previous rejection of Grayscale’s application for a spot Bitcoin ETF application, defining the regulator's process as "arbitrary and capricious."

“The Grayscale decision ultimately says that you can't allow Bitcoin futures ETFs to trade, and then argue that the same situation is not for spot Bitcoin ETF," said James Seyffart, an analyst at Bloomberg Intelligence.

That is why, according to Seyffart, the odds of a spot Bitcoin ETF approval by early January are 90%.

To understand why a spot Bitcoin ETF approval is a big deal and its potential impact on the market, check out the full Cointelegraph Report on our YouTube channel, and don’t forget to subscribe!

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