Grayscale Investments has filed its Form 8-A with the Securities and Exchange Commission (SEC), signaling substantial progress in their pursuit of launching a spot Bitcoin exchange-traded fund (ETF). This step, taken on January 4, follows closely on the heels of similar actions by Fidelity and Bitwise, highlighting a growing trend among financial firms aiming to offer spot ETFs.
The filing of an 8-A form is a pivotal regulatory requirement for companies aiming to list securities on an exchange. In the context of ETFs, it indicates a readiness to trade on an exchange pending product approval. This move is a crucial part of the approval process for Bitcoin ETFs, as evidenced by Valkyrie’s filing for a Bitcoin Strategy ETF (BITO) in October 2021.
JUST IN: Grayscale also filed Form 8-A (registration of securities) as preparation for their #bitcoin #ETF spot conversion.https://t.co/drfEh67IRR pic.twitter.com/TBaUVA9THA
— NLNico (@btcNLNico) January 4, 2024
Grayscale Make One Step Closer To Bitcoin ETF Approval
Grayscale’s decision is particularly noteworthy as it comes just one day after Fidelity’s 8-A filing and in the lead-up to an important deadline for the SEC. The commission is due to approve or disapprove a batch of 11 spot Bitcoin ETF applications by January 10, with Ark Invest facing the final decision deadline, beyond which no further delays are possible.
Grayscale’s strategy involves converting its flagship GBTC fund into a spot Bitcoin ETF. This initiative gained momentum following an August court ruling that found the SEC’s initial denial of Grayscale’s spot Bitcoin ETF application to be “arbitrary and capricious.” This ruling mandated a re-review of Grayscale’s application by the SEC, contrasting with the agency’s earlier approvals of Bitcoin futures ETFs.
Craig Salm, Chief Legal Officer at Grayscale, hinted at this development with a cryptic tweet just a few minutes before the 8-A form dropped, stating, “Just filling out some Forms. His post quickly garnered significant attention in the crypto community.
Just filling out some Forms
— Craig Salm (@CraigSalm) January 4, 2024
Bloomberg ETF analyst James Seyffart remarked on the situation with cautious optimism, noting that these filings are indicative of potential approval for the first spot ETFs in the US. However, he also clarified that these 8-A filings, while necessary, do not guarantee approval.
“These need to be done before launch. But they don’t mean they’re approved or anything — yet,” Seyffart stated, adding with regards to Fidelity’s Form 8-A yesterday: “My understanding here is that this is just a securities registration. In order to list the ETF still needs a 19b-4 approval and they need an effective/approved/completed S-1 document. No 19b-4 yet. And S-1 is still preliminary (seen below). I’m still looking towards next week.”
Walter Bloomberg echoed this sentiment, emphasizing that the 8-A filings by Fidelity and Grayscale mark a progression towards the potential approval of spot ETFs. “Fidelity, Grayscale filing 8-A forms show progress for spot Bitcoin ETF applications. Issuers’ Form 8-A filings signify registration that allows issuers to trade on an exchange and marks progress towards the potential approval of a spot bitcoin ETF.”
Fidelity’s recent 8-A registration, paired with Grayscale’s, comes amidst thorough preparations by issuers for the launch of these potential spot Bitcoin ETFs. These preparations include discussions on creation and redemption models and naming authorized participants.
Grayscale In Talks With JPMorgan, Goldman Sachs
In related developments, Grayscale is reportedly in talks with JPMorgan and Goldman Sachs regarding their roles in the proposed spot Bitcoin ETF. These discussions, revealed by Bloomberg, follow Grayscale’s recently amended S-3 application with the SEC, in which no authorized participants were listed.
As the deadline for the SEC’s decision on these ETFs approaches, Bloomberg’s ETF analysts Seyffart and Eric Balchunas currently still assess the likelihood of approval at 90% before January 10. As NewsBTC reported today, an approval decision could be announced as early as tomorrow, with the potential launch of these ETFs commencing the upcoming week, according to sources close to the matter.
At press time, BTC traded at $43,973.
Featured image created with DALL·E 3, chart from TradingView.com
