The asset manager Grayscale has submitted an updated Spot Bitcoin ETF application after his meeting with the Securities and Exchange Commission (SEC). The leading cryptocurrency, Bitcoin, also rebounded on the news as it breached the $37,000 mark again.
Why grayscale submission can be important
In his submit on November 22, Grayscale made some changes to the original S-3, which it previously filed with the SEC. If orphan As published by prominent financial lawyer Scott Johnsson, the changes include some new risk factors. Some of these risk factors would be consistent with those of ARK Invest regarding extensive disclosure of fraud and manipulation risk.
Johnsson noted that the modified risk factors are important because their inclusion is most likely a guideline SEC. Meanwhile, fraud and manipulation had served as reasons why the SEC had rejected Grayscale’s original filing. Therefore, the lawyer believes that the SEC ordering Grayscale a “concession” could mean it is no longer a “roadblock.”
As Johnsson points out, Grayscale’s revised filing is significant, especially considering that it just met with the SEC department responsible for approvals. As such, one could assume that she has been given guidance on how to ensure compliance, in the hope that approval can be obtained soon.
Meanwhile, it appears other potential issuers are also in discussions with the SEC. Bloomberg analyst James Seyffart had recently mentioned hearing rumors about this. If true, it could mean the SEC is more open to approving these ETFs.
Discover Bitcoin ETFs that provide momentum to the crypto market
Bitcoin rose above $37,000 thanks to Grayscale’s filing. This price movement indicates the impact that the Discover Bitcoin ETF story on the market. This is also not the first time that news surrounding Spot Bitcoin ETF has boosted the market.
In October, Bitcoin reached $30,000 for the first time in months fake Cointelegraph post. Although it was not true, many immediately realized the impact an approval of these funds could have on the market. Meanwhile, shortly after, Bitcoin and the entire crypto market continued to recover thanks to the story.
During that period, Bitcoin passed $35,000 on the back of the news that BlackRock iShares Bitcoin Trust was listed on the Depository Trust & Clearing Corporation. Black Rock had also revealed plans to start sowing during that period. While everyone in the market continues to cling to speculation, many will be hoping that the projection of approval will become a reality on January 10, 2024.
At the time of writing, Bitcoin is trading around $37,300, up more than 2% in the past 24 hours. facts from CoinMarketCap.
BTC price above $37,400 | Source: BTCUSD on Tradingview.com
Featured image of Regtech Africa, chart from Tradingview.com