Grayscale updates the Bitcoin ETF prospectus days following discussions with the U.S. SEC

In response to comments made by the SEC, Grayscale has updated its ETF prospectus, which might bring it one step closer to approval.

The U.S. Securities and Exchange Commission (SEC) received an amended filing from Grayscale on November 22 on their planned spot Bitcoin ETF.

Firms that have fulfilled other reporting obligations in the past utilize an adjusted S-3 prospectus, a form of registration, for this file.

According to X post by Bloomberg ETF analyst James Seyffart, the filing does not include any major revisions. What he wrote:

“Many are wondering what this signifies. Although I have not yet read it in its entirety, this adds to the growing body of evidence that Grayscale is in communication with the SEC and is revising its offering documents in response to comments and conversations with the regulator. I am eager to learn anything else new.”

While the program did delete pages of risk disclosures and cut a paragraph pertaining to cash orders, Seyffart did see the latter. His original assumption was that the filing altered the fund’s ticker from GBTC to BTC; however, he subsequently admitted that he was mistaken.

This report follows a document from November 20th that revealed several SEC officials met with Grayscale and Davis Polk representatives, as well as members of the SEC’s Division of Trading and Markets. The planned ETF’s listing on NYSE Arca was the topic of debate. In attendance was Michael Sonnsenhein, CEO of Grayscale.

Compared to previous spot Bitcoin ETF proposals, such those from BlackRock and Fidelity, Grayscale’s ETF is rather unique. Still, a lot of people think that the SEC’s involvement in Grayscale bodes well for the future of ETFs.

As of October, Grayscale was also forced to have its application reviewed by the SEC due to a court win it achieved this year. It is not necessary for the SEC to grant approval; rather, it is only that it examine the application after its 2022 rejection attempt.

Right now, the Grayscale Bitcoin Trust (GBTC) fund is selling for less than what it is worth, which is called a discount. According to YCharts, the current difference is -11.86%.

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