In a recent interview with Bloomberg, Grayscale CEO Michael Sonnenshein shared the latest developments regarding the company’s proposed spot Bitcoin ETF. Grayscale has expressed its intentions to convert its existing Grayscale BTC (GBTC) fund into an ETF, and Sonnenshein provided insights into the current interactions with regulators.
Sonnenshein emphasized that Grayscale has been diligently working with the U.S. Securities and Exchange Commission (SEC) by submitting the necessary filings and required documents. The company’s S-3 filing, a securities registration form for companies that have already met certain reporting requirements, has paved the way for a “constructive dialogue” with the SEC.
Despite ongoing discussions with the SEC, Sonnenshein revealed that Grayscale is “operationally ready” to proceed with its GBTC fund as an ETF immediately. The company has made this intention clear to the SEC, highlighting its preparedness to fulfill the necessary requirements for the conversion.
Although Grayscale is ready to move forward, it seems unlikely that the SEC will approve the ETF proposal in the near future. When questioned about a potential timeline for approval, Sonnenshein stated that “timelines are certainly not something that has been discussed.” This suggests that the wait for SEC approval could be prolonged, with no specific timeline currently in sight.
Coincidentally, on the same day, Bloomberg analysts reported that there is an eight-day period for the SEC to approve all pending spot Bitcoin ETFs. Sonnenshein’s statement implied that Grayscale’s ETF proposal is not expected to be among those approved in the coming days. However, there remains a possibility for Grayscale’s fund to receive individual approval after the November 17 collective deadline.
Other reports cite Grayscale Chief Legal Officer Craig Salm, who expressed optimism regarding their engagement with the SEC’s division of Trading and Markets. This engagement signals ongoing discussions and a positive outlook for the potential approval of Grayscale’s Bitcoin ETF proposal.
The proposed conversion of Grayscale’s GBTC fund into a spot Bitcoin ETF has seen progress with constructive dialogue established between the company and the SEC. While Grayscale is ready to operate its fund as an ETF, the approval timeline remains uncertain. However, the recent engagement with the SEC’s division of Trading and Markets indicates a promising path forward. As the investment community eagerly awaits the SEC’s decision, Grayscale and its supporters remain hopeful for a favorable outcome in the near future.