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Grayscale leads in spot Bitcoin ETF race with Sonnenshein’s strategy

Bitcoin ETF

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TL;DR

  • Grayscale Bitcoin Trust and other issuers updated their filings for a spot Bitcoin ETF.
  • The SEC set a December 29 deadline for the latest updates on spot Bitcoin ETF applications.
  • Grayscale CEO Michael Sonnenshein indicated their readiness since 2017 with established APs.

 

In a significant development in the cryptocurrency market, several issuers have updated their filings for a spot Bitcoin Exchange-Traded Fund (ETF). This move comes as the U.S. Securities and Exchange Commission (SEC) set December 29 as the deadline for such updates. Notably, Grayscale Bitcoin Trust, along with other key players, submitted crucial documents to the SEC.

Grayscale stands prepared for Spot Bitcoin ETF

Grayscale Bitcoin Trust has participated in the ongoing race for a spot Bitcoin ETF. The firm submitted a free writing prospectus (FWP) on December 29, aligning with the SEC’s deadline. Grayscale’s CEO, Michael Sonnenshein, indicated their readiness since 2017, with authorized participants (APs) like Jane Street and Virtu already in place. This claim is supported by an SEC filing dated May 4, 2017.

Bloomberg ETF analyst James Seyffart commented on the matter, acknowledging Grayscale’s preparedness and pointing out the firm’s lack of concerns about securing an AP agreement. The anticipation builds as the spot Bitcoin ETF approval window is set between January 5 and 10, 2024. Industry experts view Grayscale as a frontrunner in this race, especially with adopting the “cash model” for approval. However, as Bloomberg senior ETF analyst Eric Balchunas highlighted, Grayscale must still fulfill the requirement of filing an S-1 form and confirming their APs.

The ETF landscape is witnessing a growing interest in spot Bitcoin ETFs. Prominent issuers such as BlackRock, Fidelity, Valkyrie, VanEck, Bitwise, Invesco, Galaxy, WisdomTree, and Franklin Templeton have also submitted updated S-1 filings. These filings primarily announce authorized participants or fees associated with their proposed ETFs. Notably, the Fidelity Wise Origin Spot Bitcoin ETF boasts the lowest fee at 0.39%.

This collective movement indicates a significant shift in cryptocurrency investment, with traditional financial institutions increasing interest in Bitcoin. The updates to the S-1 filings reflect a commitment to regulatory compliance and readiness to launch these novel investment products, pending SEC approval.

Implications for the cryptocurrency market

The race for the first spot Bitcoin ETF in the U.S. is more than just a competition among issuers. It represents a potential milestone in the mainstream acceptance and institutionalization of Bitcoin. The approval of a spot Bitcoin ETF could lead to increased investor participation, potentially bringing more stability and legitimacy to the cryptocurrency market.

However, the outcome remains uncertain, with the SEC historically cautious about cryptocurrency-based ETFs. Approving a spot Bitcoin ETF would significantly depart from the SEC’s previous stance and could set a precedent for future cryptocurrency investment products.

As the race for the spot Bitcoin ETF heats up, the cryptocurrency community eagerly awaits the SEC’s decision. The outcome could herald a new era for Bitcoin and cryptocurrency investments, bridging the gap between traditional financial markets and the digital asset space.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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