Grayscale CEO Michael Sonnenshein recently provided an update on the company’s proposal to launch a spot Bitcoin exchange-traded fund (ETF). In an interview with Bloomberg, Sonnenshein discussed the progress the company has made in its interactions with regulators. Grayscale intends to convert its existing Grayscale BTC (GBTC) fund into an ETF, a move that would greatly enhance its accessibility and appeal to investors. Sonnenshein revealed that the company has been diligently submitting the necessary filings to the U.S. Securities and Exchange Commission (SEC) to support this transition and secure an uplisting on the New York Stock Exchange (NYSE).
Sonnenshein emphasized the positive nature of the discussions Grayscale has been having with the SEC. He specifically highlighted the company’s S-3 filing, which is a securities registration form used by companies to meet additional reporting requirements, as a catalyst for a “constructive dialogue” with the regulatory body. This significant progress follows the SEC’s previous attempts to dismiss Grayscale’s proposal and marks a significant turning point for the company. In August, Grayscale won a legal victory that granted the company the right to have its proposal reviewed by the SEC.
Sonnenshein also reassured Bloomberg that Grayscale is “operationally ready” to operate its GBTC fund as an ETF immediately. The company has made this fact known to the SEC, highlighting its readiness to meet the regulatory requirements and obligations that come with running an ETF. Despite this readiness, it appears that the SEC is not yet prepared to approve Grayscale’s ETF proposal. Sonnenshein stated that discussions about a possible timeline for approval have not taken place, suggesting that the approval process may still be a considerable distance away.
The Eight-Day Approval Window
Interestingly, on the same day as Sonnenshein’s update, two Bloomberg analysts reported that there is an eight-day period for the SEC to approve all pending spot Bitcoin ETFs. This revelation, however, contradicts Sonnenshein’s statements and implies that Grayscale’s ETF may not be among the proposals approved during this timeframe. It remains uncertain whether any fund will receive approval during this period. However, it is worth noting that Grayscale’s fund could still be individually approved at a later date, even after the collective deadline on November 17.
Optimism and Engagement with the SEC
Adding to the speculation surrounding Grayscale’s ETF proposal, reports suggest that the company remains optimistic about its prospects. Grayscale Chief Legal Officer Craig Salm revealed that the company is actively engaged with the SEC’s division of Trading and Markets, indicating ongoing efforts to address concerns and navigate the regulatory landscape. While the outcome of the SEC’s final decision remains uncertain, Grayscale’s persistence and commitment to engaging with regulators demonstrate its determination to bring a Bitcoin ETF to market.