Crypto giant Grayscale has just filed a new registration statement with the US Securities and Exchange Commission (SEC) as it seeks to convert its flagship Bitcoin (BTC) Trust product into a spot Bitcoin exchange-traded fund (ETF).
In a rackthe world’s largest crypto asset manager says it has just filed a Form S-3 registration statement with the securities regulator to register shares of the Grayscale Bitcoin Trust (GBTC) under the Securities Act.
Form S-3 is a simplified form for registering securities with the SEC and can only be used by companies that have met other reporting requirements. The filing is a shorter version of Form S-1 that is filed in anticipation of an initial public offering (IPO).
Grayscale says it meets the eligibility criteria for Form S-3.
“Typically, issuers file a registration statement on Form S-1 for their initial public offering of securities registered under the Securities Act. However, GBTC is eligible to use Form S-3, a shorter filing that incorporates by reference SEC disclosures and reports, because its stock has been registered under the Securities Exchange Act of 1934 since January 2020 and meets the other requirements of the form.”
Grayscale says it is ready to operate GBTC as an ETF once it receives regulatory approvals.
“Before GBTC can convert to an ETF and issue shares on a registered basis pursuant to Form S-3, NYSE Arca’s 19b-4 filing must be approved, an exemption or other form of Regulation M relief must be available, and Form S-3 must be declared effective by the SEC.”
The development comes amid reports that the SEC will not challenge the appeals court’s ruling that the agency’s denial of Grayscale’s application to offer a spot Bitcoin ETF is unlawful due to its use of inconsistent and discriminatory standards.
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