Memo: SEC and Grayscale Recently Met to Discuss Spot Bitcoin (BTC) ETF Listing

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According to a published memorandum, Grayscale Investments recently met with the US Securities and Exchange Commission (SEC) to discuss Grayscale’s spot Bitcoin (BTC) ETF bid. 

The US SEC issued a memo revealing it met with Grayscale Investments on Monday. A court recently mandated that the securities regulator re-review Grayscale’s spot BTC ETF application. 

Discussions Concerning Grayscale Bitcoin Trust (GBTC)

The SEC revealed that the asset manager met with officials from the agency’s division of trading and markets to discuss potential listing matters concerning Grayscale Bitcoin Trust’s shares. 

The memo details:

“The discussion concerned NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.” 

Officials of the SEC’s trading and market division met with members of Grayscale after the asset manager filed a new registration statement with the SEC in another attempt to convert its trust product into a spot bitcoin ETF. 

Progress has been made in terms of the application after filings last week revealed that Grayscale and the Bank of New York Mellon agreed that BNY Mellon would act as the transfer agent for shares of the trust.

Grayscale, meanwhile, is cooking… pic.twitter.com/W7sI7k07jo

— Frank Chaparro (@fintechfrank) November 21, 2023

SEC Denial of Spot ETF is Invalid

The US Court of Appeals for the DC Circuit recently issued a mandate ordering the SEC to review Grayscale’s spot bitcoin ETF application. In August, Grayscale secured a courtroom victory after judges decided the SEC must review Grayscale’s bid to have its bitcoin trust converted into an investor-friendly exchange-traded fund. After Grayscale secured the win, the SEC said it would not appeal the decision. 

So far, The SEC has denied all applications for spot bitcoin ETFs, arguing that the applicants have not shown they can protect investors from market manipulation. After denying its application, Grayscale sued the SEC, claiming the agency had previously approved certain surveillance agreements designed to prevent fraud in futures-based bitcoin ETFs. 

Recent reports revealed that the SEC was in talks with Grayscale regarding the details of its application. The news could not be confirmed then as the talks between the regulator and asset manager remained private. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.