Grayscale Discusses Spot Bitcoin ETF With SEC

By: Isha Das

Key executives from Grayscale, a leading crypto asset management firm, have recently held a meeting with the SEC (Securities and Exchange Commission). The main topic of the discussion was the proposed rule change to list the Grayscale Bitcoin Trust (GBTC) as a spot Bitcoin exchange-traded fund (ETF).

A memo from the SEC revealed that the significant individuals from Grayscale who were present at the meeting included CEO Michael Sonnenshein, legal chief Craig Salm, ETF head Dave LaValle, and other top executives. Representatives from Davis Polk law firm also joined in the discussions.

Reports suggest that the banking giant BNY Mellon would act as a transfer agent for Grayscale's Bitcoin Trust (GBTC). It is anticipated to facilitate the issuance and redemption of GBTC shares and will also be managing the shareholder accounts. This involvement of BNY Mellon, however, doesn't suggest that GBTC conversion is imminent.

Grayscale has high hopes to dominate the Bitcoin ETF market once it receives approval from the SEC. Once it gets permission for 'uplisting' GBTC to a spot Bitcoin ETF, GBTC could be set to compete head-on with BlackRock in the ETF market.