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Grayscale Investments is looking to advance its bid to launch a spot bitcoin ETF after the Securities and Exchange Commission opted not to appeal the company\u2019s August court win.\u00a0<\/p>\n
The crypto-focused asset manager continued its quest to convert its Grayscale Bitcoin Trust (GBTC) to an ETF \u2014 an effort the SEC blocked, and was subsequently sued for<\/a> last year \u2014 with a new filing Thursday.\u00a0<\/p>\n The action is \u201cmore of a procedural milestone\u201d for the firm to kick off conversations with another SEC division as the lawsuit wraps up, a person familiar with the filing told Blockworks.\u00a0<\/p>\n The DC Circuit Court of Appeals ruled<\/a> in August that the SEC\u2019s actions in denying this conversion, but allowing bitcoin futures ETFs to trade, was \u201carbitrary and capricious.\u201d The regulator did not challenge that decision, as the firm \u2014 and industry \u2014 now await a final mandate by the court this week.\u00a0<\/p>\n Read more:<\/strong> \u2018Game on\u2019: SEC opts not to appeal Grayscale\u2019s court win<\/a><\/p>\n In the meantime, Grayscale filed<\/a> with the SEC Thursday to register shares of the GBTC under the Securities Act of 1933 via an S-3 form.<\/p>\n ETF issuers typically file a registration statement on Form S-1 for the initial public offering of equity securities registered under the act. Grayscale was eligible to use the S-3 form \u2014 a more simplified document \u2014 in part because GBTC became<\/a> an SEC reporting company in January 2020, the company said in a Thursday blog post<\/a>.<\/p>\n The filing is another step toward getting GBTC converted to an ETF \u2014 a prospect industry watchers have said they believe became more likely after the Court of Appeals\u2019 August ruling.<\/p>\n Ultimately, three things must happen for the conversion to occur, Grayscale noted in the post. NYSE Arca\u2019s 19b-4 filing \u2014 the subject of what was litigated in court \u2014 must be approved. Grayscale also needs to obtain Regulation M relief<\/a> and have its S-3 form declared effective by the SEC.\u00a0\u00a0<\/p>\n While the SEC\u2019s division of trading and markets reviews the 19b-4 filing and grants Regulation M relief, the regulator\u2019s division of corporation finance reviews S-1 and S-3 filings.\u00a0<\/p>\n \u201cImportantly, GBTC is ready to operate as an ETF upon receipt of these regulatory approvals, and on behalf of GBTC\u2019s investors, Grayscale looks forward to working collaboratively and expeditiously with the SEC on these matters,\u201d the company said in the blog post.\u00a0<\/p>\n An SEC spokesperson did not immediately return a request for comment.<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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