Key Updates to the Trust’s Operation
Grayscale Investments has submitted an updated filing to the SEC for its Grayscale Bitcoin Trust (GBTC) to operate as a spot Bitcoin ETF. The amended S-3 filing includes several notable changes:
First, Grayscale aims to adopt a cash redemption model for the ETF, aligning with the SEC’s preferred cash-only creation/redemption policy. This was highlighted by Bloomberg Intelligence ETF analyst James Seyffart.
Other ETF issuers like BlackRock, ARK Invest and 21Shares have also adopted this cash-only model, and Grayscale’s acceptance of it was seen as a significant move by ETF analyst Eric Balchunas.
Second, the filing indicates that only cash orders will now be accepted for creating and redeeming ETF shares. Currently, Grayscale can accept cash but not perform in-kind transactions with Authorized Participants.
Airdrops and Forks Remain Unclear
Finance lawyer Scott Johnson noted a change in Grayscale’s approach to handling airdrops and forks, deciding to forgo claiming them. Experts do not yet understand Grayscale’s decision.
Hashdex, another Bitcoin ETF issuer, recently had a meeting with SEC Chair Gary Gensler on December 26, which Seyffart called “highly unusual” as issuers typically meet with other SEC divisions.