Grayscale Investments Meets with SEC to Discuss Spot Bitcoin ETF Details

Grayscale Investments, a prominent cryptocurrency asset manager, is making significant strides in its quest to convert its Grayscale Bitcoin Trust (GBTC) into a spot bitcoin exchange-traded fund (ETF).

The company recently held a crucial meeting with the Securities and Exchange Commission (SEC) to discuss potential listing matters related to the shares of the product.

Grayscale Meets with SEC to Discuss Listing Matters

According to a memo published by the SEC, Grayscale Investments convened with officials from the SEC’s Division of Trading and Markets to discuss potential listing matters concerning the shares of the product.

“The discussion 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,” the memo stated.

This meeting follows Grayscale’s submission of a new registration statement to the SEC last month in its latest attempt to transition the trust product into a spot bitcoin ETF. A notable development preceding this meeting was a formal mandate issued by a D.C. circuit court, directing the regulator to re-review the firm’s application.

Grayscale’s Strategic BNY Mellon Partnership

An earlier filing revealed that Grayscale had agreed with the Bank of New York Mellon (BNY Mellon) to appoint the latter as the transfer agent for trust shares. In this role, the bank will oversee and facilitate issuing and redeeming shares and manage Grayscale Bitcoin Trust (GBTC) shareholder accounts.

Bloomberg ETF analyst James Seyffart, on November 21, shared insights on X regarding the role of the trading and markets division in approving or denying 19b-4s, a form used to inform the SEC of proposed rule changes by self-regulatory organizations. Seyffart noted that Grayscale’s agreement with BNY Mellon was likely a necessary step and should not be seen as an indicator of an imminent conversion of GBTC.

Scott pointed out the Transfer Agent agreement with BNY Mellon in $GBTC‘s 8K today because he apparently has eyes everywhere. That said, this agreement is likely something that was always going to be required at some point. Says nothing about timing IMO https://t.co/8eIYNMWzzw

— James Seyffart (@JSeyff) November 21, 2023

Grayscale intends to list the shares of its Grayscale Bitcoin Trust on NYSE Arca under the symbol GBTC. The issuance of these shares will occur on an ongoing basis upon approval of its S-3 form and a separate 19b-4 filing from NYSE Arca, as outlined in the S-3 filing submitted on October 19.

James Seyffart also hinted at the possibility of other potential spot bitcoin ETF issuers meeting with the SEC in recent weeks, suggesting a broader trend within the cryptocurrency industry.