Grayscale aims for early Bitcoin ETF approval by the SEC and adapts to a cash-only model

Grayscale has made a significant step forward by submitting a new request to the Securities and Exchange Commission (SEC) to convert its Bitcoin Trust (GBTC) into a Bitcoin Exchange-Traded Fund (ETF).

This strategic shift aligns with Grayscale’s goal of obtaining early approval for its Bitcoin ETF, with the SEC expected to make a critical decision by January 10, 2024.

Grayscale’s recent filing is notable for its willingness to embrace a cash-only model, a requirement imposed by the SEC.

Unlike traditional ETFs, which allow for in-kind trades, ETFs that operate on a cash-only model only conduct transactions in cash.

This adaptation demonstrates Grayscale’s dedication to meeting regulatory requirements and navigating the ever-changing landscape of ETF approvals.

However, some experts believe that this change will raise the cost of purchasing shares and may have an impact on the ETF’s efficiency.

Grayscale met the SEC’s December 29 deadline for final changes to its ETF proposal, marking a watershed moment in the company’s regulatory journey.

Notably, Grayscale won a legal battle with the SEC in August, prompting the regulator to reconsider its earlier rejection of Grayscale’s ETF application. Grayscale’s ETF request decision is expected to be delivered by January 10, 2024.

Grayscale’s fund discount has decreased as a result of the court victory, reaching 5.51%, according to Coinglass. This narrowing discount indicates growing investor confidence in Grayscale’s Bitcoin Trust.

According to Coinglass analysts, this discount will continue to shrink by early 2024, reflecting positive sentiment and increased investor trust in GBTC.