Grayscale has made another amended S-3 filing with the SEC. The news of the amended filing came just hours after the resignation of Barry Silbert from Grayscale’s Board of Directors.
Quick Take:
- Grayscale’s amended filing along with Silbert’s departure have sparked speculation about the plans to convert GBTC to a Bitcoin ETF.
- Grayscale’s approach to accepting cash-only mirrors the requirements of the SEC.
- Continued amendments show Grayscale’s commitment to evolve and stay competitive.
- Analysts predict a major disruption following the introduction of spot Bitcoin ETFs.
The development has led several analysts in the broader market to speculate that Silbert’s departure might increase the odds of converting its GBTC to a spot Bitcoin ETF.
Many analysts argue that Silbert deliberately resigned to improve the odds of Bitcoin ETF approval. The departure was already highlighted in a K-8 filing to the SEC on December 26, with the firm announcing that DCG’s Chief Financial Officer would replace Silbert as the chairman of the board at Grayscale.
Grayscale Finally Accepts the Cash Mandate
The masses have come to believe that the updated filing aims to convert the GBTC fund into a Bitcoin ETF. Recent reports highlighted that Grayscale is making compromises regarding the acceptance of the SEC’s mandate on cash-only orders.
The filing highlights that the Trust creates baskets only on the receipts of Bitcoins, and these baskets are only redeemed by the distribution of Bitcoin tokens. Currently, only an Authorized Participant is eligible to submit cash orders, as the Trust only accepts cash orders.
Grayscale has made amendments to its 2018 filing nine times. In November this year, the assets manager made two notable changes. The first change described how fees would be collected from a monthly to a daily basis. The second change modified the combination of assets to simplify the creation and redemption of shares.
The recent development indicates Grayscale’s commitment to boosting its competition with other leading players, including BlackRock in the Bitcoin ETF market.
Spot Bitcoin ETFs Might be Disruptive
Many analysts claim that Bitcoin ETFs are disruptive because they tend to offer low-cost investment options. These comments are usually made concerning the comments of a crypto exchange leader who warned about the disappearance of Bitcoin following the approval of the ETFs.
At the same time, analysts highlight the difference in earnings between various crypto exchanges and ETF markets. However, many argue that crypto exchanges have the potential to earn more, and introducing the Bitcoin ETFs might challenge their already existing profit model.
