Executives from crypto asset manager Grayscale have met with the Securities and Exchange Commission to discuss details of its flagship Bitcoin (BTC) trust, which the firm wants to convert to a spot Bitcoin exchange-traded fund (ETF).<\/p>\n
A Nov. 20 SEC memo disclosed Grayscale CEO Michael Sonnenshein, legal chief Craig Salm, ETF head Dave LaValle and four other executives, along with five Davis Polk law firm representatives, met with the SEC\u2019s division of trading and markets.<\/p>\n
The memo said discussions \u201cconcerned NYSE Arca, Inc.\u2019s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.\u201d<\/p>\n
Grayscale detailed that it had entered a Transfer Agency and Service Agreement with BNY Mellon, according to a filing shared by Bloomberg ETF analyst James Seyffart.<\/p>\n
The bank will act as the agent for its Grayscale Bitcoin Trust (GBTC), facilitating the issuance and redemption of shares and maintaining shareholder accounts. <\/p>\n
In a Nov. 21 X (Twitter) post, Seyffart observed the trading and markets division is in charge of approving or denying 19b-4s \u2014 a form used to inform the SEC of a proposed rule change by a self-regulatory organization. <\/p>\n
Seyffart added Grayscale\u2019s agreement with BNY Mellon was \u201clikely something that was always going to be required at some point\u201d and isn\u2019t an indicator that the GBTC will soon be converted.<\/p>\n
In a Nov. 22 X post, ETF Store President Nate Geraci opined the \u201cmost substantive aspect of Grayscale\u2019s SEC meeting yesterday is that GBTC \u2018conversion\u2019 is being referred to as an \u2018uplisting.\u2019\u201d<\/p>\n
\u201cThat doesn\u2019t indicate any issues with conversion to ETF,\u201d he said. <\/p>\n
Grayscale has a real shot of dominating this ETF category if it can \u201cuplist GBTC to NYSE Arca on the same day other issuers launch spot BTC ETFs,\u201d and they make a concerted effort to compete on fees, Geraci added. <\/p>\n
Geraci said Grayscale will enter the markets on day one with $20 billion in assets under management, even with BlackRock in the mix.<\/p>\n