Grayscale awaits approval to convert its Bitcoin fund into an ETF. Some reports say the SEC could give it the go-ahead around December.
The United States Securities and Exchange Commission (SEC), the country’s top financial regulator, has notified the application for Grayscale’s Bitcoin exchange-traded fund (ETF). This application represents the beginning of a countdown to a verdict on the ETF. There is some anticipation about an upcoming approval by the end of the year.
The world’s largest cryptocurrency fund manager had requested to convert the Grayscale Bitcoin Trust fund into an ETF that tracks the cryptocurrency prices.
The company had announced the plans early this year but finally chose to introduce the application in October, right after the approval of the first Bitcoin ETFs in the country. The ProShares Bitcoin Futures ETF began trading on the NYSE on October 18. A few days after a similar fund managed by Valkyrie got also launched on the Nasdaq market.
Grayscale Eagerly Awaits to Launch its Bitcoin ETF
The US regulatory body had notified receipt of Form 19b-4 from Grayscale, according to the information posted on November 2. This notification means that the Commission must decide to approve or raise disapproval on the application within 45 active days after the form meets its consent, although the regulator can also postpone the verdict date for up to three more periods, as required.
As such, the NYSE Arca Stock Exchange filed Form 19b-4 to list Grayscale’s GBTC converted to an ETF on October 19, beginning the time for the SEC to decide on the product. If the verdict takes effect within the indicated times, the estimated date should be between the first weeks of December.
Some considerations highlight that the SEC also requested comments from those interested in the document published this week. The agency has already taken this approach in the past with some previous requests.
As an example, more recently, with an ETF application from VanEck, the Commission also requested comments from stakeholders. The SEC aimed the decision at four applications to the end of 2021. For applicants, it was not the first request they had received. VanEck is one of them and it could expect a response by November 14.
The news about the SEC notification has raised many expectations among members of the community. Some reports, including a publication by The Block, anticipate that the regulatory entity could decide as soon as December 24. Users on Twitter have also marked the holiday as a date for a possible verdict.
However, the Commission has a history of extensions on applications for Bitcoin spot investment products. While the agency approved the first crypto ETFs this year, they get based on bitcoin futures, and there has yet to be an approval of a fund supported by the physical asset.
Currently, more than 40 cryptocurrency ETFs awaits SEC approval, according to information recently shared by Bloomberg Intelligence analyst James Seyffart.
By: Jenson Nuñez
