Grayscale Amends Bitcoin ETF Application, Excludes Authorized Participant Details
Grayscale, a prominent cryptocurrency asset management firm, has filed an amendment to its registration statement with the U.S. Securities and Exchange Commission (SEC).
On January 2, Grayscale filed an amended Bitcoin exchange-traded fund (ETF) application with the SEC, but the filing lacks details about authorized participants. It submitted a filing, known as an S-3 form, which is typically used for securities offerings and registrations.
New Grayscale amendment just dropped. Clear language on cash only but still no AP named, just blanks where name should go. Not sure why since SEC wants to see it and they have been pretty cocksure about having one. Also, nothing on fee (that I could see). That's big open q too. https://t.co/tQ9MTBlvg8 pic.twitter.com/id8Tb8ImaP
— Eric Balchunas (@EricBalchunas) January 2, 2024
The amendment, labeled “amendment no. 3,” is specifically filed for the purpose of submitting certain exhibits and does not indicate modifications to any provisions of the prospectus that constitute a part of the registration statement.
The updated application includes clear language indicating that Grayscale has adopted a cash-creating strategy, where the company only receives and pays out cash in exchange for shares in the fund. Although this strategy aligns with the SEC’s requirement for ETF issuers, as Grayscale intends to use the cash to buy and hold spot Bitcoin, it will not pay out or receive bitcoins from customers.
Notably, the filing did not name an authorized participant (AP) for the conversion of GBTC to an ETF. An authorized participant is typically the first to purchase and trade shares. However, the document left the names of the authorized participants blank, raising questions about the omission,
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