Business Markets News Report
December 27, 2023

Grayscale Revises Bitcoin ETF Filing, Incorporates Cash Creation Model

In Brief

Grayscale submitted a revised S-3 filing to the SEC, aligning with the cash creation model suggested earlier by the US SEC.

Grayscale Revises Bitcoin ETF Filing, Incorporates Cash Creation Model

Digital currency asset management company Grayscale, submitted another revised S-3 filing to the United States Securities and Exchange Commission (SEC). In the amended S-3 filing, Grayscale aligned with the cash creation model, as suggested earlier by the regulator. 

The ongoing debate between asset managers seeking to launch a spot Bitcoin ETF and the SEC has centered on the choice between cash and in-kind creations.

Typically, stock and commodity-based exchange-traded funds ETFs operate on an in-kind model, allowing fund market participants direct handling of assets in the fund. On the contrary, a cash-creation model for a spot Bitcoin ETF implies that new shares can only be created or redeemed through cash transactions.

The SEC’s recent move to restrict broker-dealers from directly dealing with Bitcoin is seen as an effort to enhance tracking of Bitcoin movements from exchanges, addressing potential risks associated with anti-money laundering or Know Your Customer (KYC) compliance.

Until recently, Grayscale was hesitant to give up the fight for in-kind creations.  The new development followed the chief executive officer of Grayscale parent company Digital Currency Group, Barry Silbert’s resignation from Grayscale’s board of directors. 

Companies Adjust Spot Bitcoin ETF Filings adding Cash Redemptions

Currently, approximately thirteen companies have applied for a spot Bitcoin ETF, valued based on the real-time price of the digital asset. 

In a recent development, Multinational investment company BlackRock also revised its proposed filing for a spot Bitcoin ETF and incorporated the option for cash redemptions. 

The adjustment is seen as a strategic move to enhance the likelihood of obtaining approval from the SEC.

The company prioritized obtaining SEC approval for its proposed Bitcoin ETF as a key corporate goal, describing Bitcoin as an “international asset” and a “store of value” comparable to gold. 

Recent adjustments in Grayscale and BlackRock Bitcoin ETF filings, reflect companies’ adaptability amid the ongoing debate with the SEC, highlighting the evolving interest among companies to launch spot Bitcoin ETFs.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Othentic Raises $4M Funding From Breyer Capital To Advance Development Of Modular Networks In Shared Security Environment
Business News Report Technology
Othentic Raises $4M Funding From Breyer Capital To Advance Development Of Modular Networks In Shared Security Environment
April 22, 2024
Celo Developer cLabs Proposes Launch Of Its Ethereum Layer 2 Solution On Optimism’s OP Stack
News Report Technology
Celo Developer cLabs Proposes Launch Of Its Ethereum Layer 2 Solution On Optimism’s OP Stack
April 22, 2024
ICON Integrates Its Cross-Chain DEX Balanced With Injective, Announces Regular INJ Token Purchases
Business News Report Technology
ICON Integrates Its Cross-Chain DEX Balanced With Injective, Announces Regular INJ Token Purchases
April 22, 2024
Exponential Bitcoin Bull Market Is Yet To Commence, Notes Crypto Analyst Willy Woo
Markets News Report Technology
Exponential Bitcoin Bull Market Is Yet To Commence, Notes Crypto Analyst Willy Woo
April 22, 2024