The cryptocurrency asset manager Grayscale has submitted a revised application for a Bitcoin exchange-traded fund (ETF) but has left out the information on allowed participants.The company underlined that approved participants in its proposed ETF could only pay and receive cash for shares, according to a report by Eric Balchunas, senior ETF analyst at Bloomberg, who noticed the modified filing on X (previously Twitter).
In the modified documentation that Grayscale filed with the US Securities and Exchange Commission (SEC), Balchunas further draws attention to the fact that Grayscale omitted the names of its authorized participants.
“Not sure why since SEC wants to see it and they have been pretty cocksure about having one. Also, nothing on fee (that I could see). That’s big open q too.”
Seven firms hoping to introduce the first Bitcoin ETF products in the United States filed their most recent Form S-1 applications on December 29, according to a story published by Cointelegraph on the same day.
The approved participants of Fidelity, WisdomTree, and Invesco Galaxy were disclosed in the recent filings.While WisdomTree and Fidelity listed Jane Street Capital, Invesco Galaxy chose Virtu and JPMorgan.Financial institutions or businesses that are able to issue and redeem shares of an ETF are known as authorized participants.In June 2022, Grayscale said that it planned to list Virtu Financial and Jane Street as authorized partners in its effort to turn the Grayscale Bitcoin Trust into an exchange-traded fund (ETF).
Balchunas went on to say that he didn’t know why Grayscale had purposefully left out its approved participants while other companies had provided clarification on these points.
“Yes, and they even tweeted that of course they have one, but alls I know (in philly accent) it isn’t in doc yet (which SEC wants) and until we see we aren’t counting any horse as official. Also, BlackRock, Fidelity et al did it, so why not be done w it?,” Balchunas wrote.
On December 27, Grayscale filed an amended S-3 filing with the SEC. That same day, CEO of Digital Currency Group, Grayscale’s parent company, Barry Silbert, announced his departure from the business’s board of directors.The SEC has until January 10th to provide a decision on the most recent submissions from potential Bitcoin ETF issuers.Industry insiders have suggested that by the end of the first week of 2024, the SEC would respond to the corporations that applied.