Grayscale is in negotiations with the SEC to convert a spot bitcoin ETF


After the SEC ruled that it must reconsider Grayscale’s application to convert its spot bitcoin ETF, the company began communicating with the SEC’s Division of Trading and Markets and its Division of Corporation Finance.

According to a report, the Securities and Exchange Commission has begun discussions with Grayscale Investments about the firm’s proposal for transforming its most prominent fund into a spot bitcoin exchange-traded fund.

After a judge ruled that the SEC must re-evaluate Grayscale’s application for a spot bitcoin ETF, the company reportedly contacted the SEC’s Division of Trading and Markets and Division of Corporation Finance, according to a report from CoinDesk on Wednesday quoting a source familiar with the matter.

In response to the SEC’s rejection of Grayscale’s proposal to convert its flagship GBTC fund last year, the asset management company filed a lawsuit in federal court in the District of Columbia in August, and three judges ordered that the SEC must re-evaluate the proposal.

Before the court issued an official mandate to enforce the August order, Grayscale filed a new document on behalf of the fund a few weeks ago.

During a September hearing before the Senate Banking Committee, SEC Chair Gary Gensler said that the agency had not yet made a conclusion after studying the court’s ruling. BlackRock and Fidelity are just two of the several companies that have applied to launch spot bitcoin ETFs. The Grayscale ruling, according to some analysts, might be the deciding factor.

Last month, Gensler told an observer that the Division of Corporation Finance provides comments, while the Division of Trading and Markets reviews the files.

“This method has been used successfully for many years. A group inside the SEC called the Disclosure Review Team “responds and provides feedback to prospective issuers,” as stated by Gensler.

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