- Grayscale, the world’s largest digital asset manager, continues its efforts to bring back the spot Bitcoin ETF.
- BNY Mellon will serve as the representative for Grayscale Bitcoin Trust (GBTC), managing the issuance and redemption of shares, and auditing shareholder accounts.
- Grayscale’s success in convincing the SEC to convert the GBTC product into a spot Bitcoin ETF has somewhat inspired Commissioner Pierce to think positively in this direction.
Digital asset manager Grayscale Investments is continuing its discussions with the SEC regarding the application for a spot Bitcoin ETF: Details about the meeting.
Grayscale Continues Talks with the SEC
Grayscale, the world’s largest digital asset manager, continues its efforts to bring back the spot Bitcoin ETF. On November 21, Tuesday, Grayscale entered into discussions with the SEC and announced that it had completed a Transfer Agency and Service Agreement with BNY Mellon for the spot Bitcoin ETF.
On November 20, a note from the SEC revealed that Grayscale executives, including CEO Michael Sonnenshein, had discussions with the SEC’s trading and markets division. The meeting focused on the proposal to list and trade Grayscale Bitcoin Trust (BTC) shares on NYSE Arca, Inc. under NYSE Arca Rule 8.201-E.
Later, Grayscale announced a Transfer Agency and Service Agreement with BNY Mellon through a file shared by Bloomberg ETF analyst James Seyffart. BNY Mellon will act as the representative for Grayscale Bitcoin Trust (GBTC), managing the issuance and redemption of shares, and auditing shareholder accounts.
Seyffart, in a tweet on November 21, mentioned that the trading and markets division has the responsibility to approve or reject the 19b-4s used to inform the SEC about a rule change proposed by a self-regulatory organization. He stated that the agreement with BNY Mellon is likely a requirement and does not necessarily indicate an imminent transformation of GBTC. The meeting with the SEC took place within a week of the security regulator further delaying its decision on the spot Bitcoin ETF.
When Will the ETF Arrive? Will Grayscale Dominate?
James Seyffart shared his views on the recent events and stated that, despite questions, the probabilities, together with Eric Balchunas, are unlikely to exceed 90% by January 10. However, Seyffart added that developments are still progressing positively. On the other hand, “Crypto Mom” and SEC Commissioner Hester Pierce shared her thoughts on future developments. Speaking with Bloomberg TV reporter Sonali Basak, Pierce said, “There’s no reason to stand in the way of a Bitcoin ETF.”
Grayscale’s success in convincing the SEC to convert the GBTC product into a spot Bitcoin ETF has somewhat inspired Commissioner Pierce to think positively in this direction. However, she remained silent on what might be behind the idea of the SEC approving all Bitcoin ETF applications simultaneously.
If Grayscale can successfully transfer GBTC to NYSE Arca, accompanying other issuers launching spot BTC ETFs simultaneously, it positions itself to lead in the ETF sector. Combined with a strategy focused on sustaining competition through fees, this could position Grayscale for dominance, according to Nate Geraci, President of ETF Store.
Geraci stated that Grayscale is ready to enter the market with $20 billion in assets under management from day one, despite BlackRock’s presence. Bloomberg predicts that the Bitcoin ETF market will reach $100 billion. Therefore, Grayscale’s chances of having a significant portion of it are high.
