Bitcoin ETF

Bitcoin

Grayscale Bitcoin Trust

James

<ul> 
 <li><em>Grayscale agreed to the cash-only model as mandated by the SEC.</em></li> 
 <li><em>Grayscale’s application is due for a decision on the 10th of January.</em></li> 
</ul> 
<p>Crypto asset management firm Grayscale filed a revised S-3 filing with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Bitcoin Trust (GBTC) into a spot <a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin [BTC]</a> ETF, according to Bloomberg research analyst James Seyffart.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">UPDATE: <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">@Grayscale</a> just filed another amended S-3 to convert <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">$GBTC</a> into a <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">#Bitcoin</a> ETF. <a href="https://t.co/TKPP9ufa9X" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">pic.twitter.com/TKPP9ufa9X</a></p> 
 <p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1739764105316126861?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">December 26, 2023</a></p>
</blockquote> 
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<h4 style="text-align: left;"><strong>Grayscale compromises for approval</strong></h4> 
<p>Recall that the regulator has <a href="https://ambcrypto.com/race-for-bitcoin-etfs-heats-up-as-sec-issues-deadline/" target="_blank" rel="noopener" data-wpel-link="internal">fixed</a> 29th December as the deadline for submitting final changes to respective filings. Firms missing this cut-off date won’t be considered for the first wave of potential approvals in January 2024.</p> 
<p>One of the notable aspects of the amended filing was Grayscale agreeing to the cash-only model as mandated by the SEC. Seyffart viewed this development as “bending the knee” by the world’s largest digital asset manager.</p> 
<p>However, Grayscale was not the first to succumb to the diktat. BlackRock and ARK Invest previously made changes to their filings to comply with the cash creation and redemption model.</p> 
<h4><strong>Understanding the conflict</strong></h4> 
<p>For the uninitiated, SEC’s cash-only requirement means that ETF’s underlying assets could be exchanged/redeemed with a market maker only via cash transactions, as opposed to the in-kind model prevalent across stock-based ETFs.</p> 
<p>While this helps in aligning the ETF’s share price with the underlying asset, in this case Bitcoin, it could make the share more expensive for investors.</p> 
<p>Grayscale’s stance reflected that it was willing to compromise in order to be among the first wave of approvals.</p> 
<p>On the whole, the company has been upbeat about its prospects ever since a court ruling in its favor in August. The court had ordered the SEC to reconsider its prior denials of Grayscale’s request to convert the trust into a spot Bitcoin ETF.</p> 
<p>Grayscale’s application is due for a decision on the 10th of January.</p>  
<p style="text-align: center;">How much are&nbsp;<a href="https://ambcrypto.com/convert/1-btc-to-usd" target="_blank" rel="noopener" data-wpel-link="internal">1,10,100 BTCs worth today</a>?</p>  
<h4><strong>GBTC discount narrows</strong></h4> 
<p>Since the legal victory, the fund’s discount to its underlying Bitcoin holdings have narrowed considerably. According to <a href="https://x.com/coinglass_com/status/1739847693575590099?s=20" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">Coinglass</a>, it dropped to 5.51% as per a recent update.</p> 
<p>Typically, when the discount narrows, it implies that investors were having a more bullish view on GBTC. Coinglass predicted that the discount will be closed in the first quarter of 2024.</p> 
<div id="attachment_360808" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC.jpg" data-wpel-link="internal"><img aria-describedby="caption-attachment-360808" decoding="async" class="wp-image-360808 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC.jpg" alt="" width="1372" height="503" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC.jpg 1372w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC-300x110.jpg 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC-1024x375.jpg 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/GBTC-768x282.jpg 768w" sizes="(max-width: 1372px) 100vw, 1372px"></a>
 <p id="caption-attachment-360808" class="wp-caption-text">Source: Coinglass</p>
</div> 
<p>&nbsp;</p>

Grayscale files revised application for Bitcoin spot ETF, details here

AMBCrypto

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