In a strategic move to stay ahead of the bitcoin Spot ETF race, Grayscale has filed a newly revised S-3 for its bitcoin Spot ETF. The new filing will change the dynamics of the Grayscale bitcoin ETF by incorporating cash creations.
Presentation of the new Grayscale Spot bitcoin ETF
Bloomberg analyst, James Seyffart took to X (formerly Twitter) to announce that Grayscale, one of the world's leading crypto asset management firms, has officially filed an amended S-3 for bitcoin Spot ETF.
The asset management company filed the new filing with the U.S. Securities and Exchange Commission. (SECOND) on December 26. According to the presentation, Grayscale will change to a cash-only policy and will accept only cash orders for its Spot investments in bitcoin ETFs.
“At this time, an Authorized Participant may only submit cash orders, pursuant to which the Authorized Participant will deposit cash or accept cash from the Cash Account in connection with the creation and redemption of Baskets,” the filing states.
He added:
“Cash orders will be facilitated by the Transfer Agent and Grayscale Investments, LLC, acting other than as Sponsor, who will contract with one or more eligible companies (each, a “Liquidity Provider”) other than agent of, or otherwise acting on behalf of, any participant authorized to obtain or receive bitcoin in connection with such orders.”
Bloomberg senior analyst Eric Balchunas also commented on the new change in bitcoin/grayscale-bitcoin-etf-2-7-billion-exodus-jpmorgan/” rel=”nofollow noopener” target=”_blank”>Grayscale bitcoin Spot ETF S-3 Filing. “The fact that Grayscale finally gave in to cash-only creations was a big hurdle. I'm pretty sure they have an AP deal (a crucial last step), so that would check all the boxes. That said, it remains a mystery whether they will be allowed to go on the first day of the Cointucky Derby,” Balchunas. saying.
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The new presentation comes amid the resignation of Grayscale's president
Grayscale's newly amended S-3 bitcoin Spot ETF filing comes on the heels of the recent resignation from Digital Currency Group (DCG) CEO Barry Silbert of Grayscale's board of directors.
Silbert's resignation would reportedly be effective from January 1, 2024. DCG The CEO will be replaced by DCG CFO Mark Shifke as the new president of Grayscale.
Ram Ahluwalia, a member of the crypto community, recently stated in a x (formerly Twitter) publishes that Silbert's resignation presents a great opportunity for CEO in grayscale, Michael Sonnenshein. Ahluwalia speculated that Silbert's resignation as president of Grayscale could facilitate the conversion of Grayscale bitcoin Trust (GBTC) to a spot bitcoin ETF.
“This is a decision by Barry to improve the odds of ETF approval. “I doubt the SEC has given formal instructions to Barry to resign from the board,” Ahluwalia said. “Barry, from all indications, is hands-on and he would prefer control. The SEC should have no say in how Grayscale should be governed. “Perhaps the SEC could informally indicate the ‘strength’ of a (purely speculative) request.”
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