Bitcoin ETF Gets Nearer: Grayscale Files Form 8-A, Explained

Grayscale Investments has filed its Form 8-A with the Securities and Exchange Commission (SEC), signaling substantial progress in their pursuit of launching a spot Bitcoin exchange-traded fund (ETF). This step, taken on January 4, follows closely on the heels of similar actions by Fidelity and Bitwise, highlighting a growing trend among financial firms aiming to offer spot ETFs.

The filing of an 8-A form is a pivotal regulatory requirement for companies aiming to list securities on an exchange. In the context of ETFs, it indicates a readiness to trade on an exchange pending product approval. This move is a crucial part of the approval process for Bitcoin ETFs, as evidenced by Valkyrie’s filing for a Bitcoin Strategy ETF (BITO) in October 2021.

 

1. Grayscale’s 8-A Form Filing: Key Progress in Bitcoin ETF Pursuit

  • Grayscale Investments filed its Form 8-A with the SEC on January 4, signaling significant progress in the pursuit of launching a spot Bitcoin exchange-traded fund (ETF).
  • The filing is a crucial regulatory requirement for companies seeking to list securities on an exchange, indicating readiness to trade pending product approval.

2. Growing Trend Among Financial Firms for Spot ETFs

  • Grayscale’s move follows similar actions by Fidelity and Bitwise, reflecting a growing trend among financial firms aiming to offer spot Bitcoin ETFs.
  • Fidelity’s 8-A filing, just a day before Grayscale’s, highlights the industry’s momentum in pursuing spot ETFs.

3. Deadline and SEC Approval for Spot Bitcoin ETFs

  • The SEC faces a January 10 deadline to approve or disapprove 11 spot Bitcoin ETF applications, with Ark Invest having the final decision deadline.
  • Grayscale’s strategy involves converting its GBTC fund into a spot Bitcoin ETF, gaining momentum after a court ruling in August.

4. Cautious Optimism in the Crypto Community

  • Analysts express cautious optimism, noting that 8-A filings, while necessary, do not guarantee approval.
  • Bloomberg ETF analyst James Seyffart emphasizes the progress shown by Fidelity and Grayscale’s 8-A filings, marking a potential move towards spot Bitcoin ETF approval.

5. Talks with JPMorgan and Goldman Sachs

  • Grayscale is reportedly in talks with JPMorgan and Goldman Sachs regarding their roles in the proposed spot Bitcoin ETF.
  • Discussions follow Grayscale’s amended S-3 application with the SEC, and preparations include creation and redemption models and authorized participant naming.

6. Potential Approval and Launch Timeline

  • Bloomberg’s ETF analysts assess the likelihood of approval at 90% before January 10.
  • Approval decision could be announced soon, with the potential launch of spot Bitcoin ETFs in the upcoming week, according to sources close to the matter.

Note: The blog post covers Grayscale’s progress, industry trends, regulatory context, and potential partnerships, reflecting the evolving landscape of Bitcoin ETFs.

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