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Will Grayscale’s Spot Bitcoin ETF Rally the Next Crypto Bull Market?

Grayscale Investments is actively pursuing approval from the Securities and Exchange Commission (SEC) for its Grayscale Bitcoin Trust to transition into a spot bitcoin exchange-traded fund (ETF).

In a recent meeting on November 20th documented by the SEC, Grayscale engaged with officials from the SEC’s division of trading and markets to deliberate on potential listing considerations for the trust’s shares.

The focus of the discussion revolved around NYSE Arca, Inc.’s proposed rule change related to listing and trading Grayscale Bitcoin Trust shares under NYSE Arca Rule 8.201-E, as per the memo released by the SEC.

Having been in the SEC’s radar for many months now, Bitcoin ETFs are near the deadline for approval.

Their approval will be monumental for crypto within the institutional realm – especially when industry insiders eye a potential $100 billion market, driven by major players like BlackRock and Fidelity.

Once the ETFs are all but confirmed, the introduction of these big players will likely lead to a bullish trend for Bitcoin over the next few weeks.

Based on the current trajectory, the SEC is gearing up for a potential mid-January approval.

Grayscale’s efforts align with a broader trend, with major asset managers like BlackRock and Fidelity also seeking SEC approval for spot bitcoin ETFs.

SEC Chair Gary Gensler acknowledged last month that the regulator is actively reviewing such filings.

Grayscale’s recent manoeuvres include a filed registration statement with the SEC, representing the latest move to transform the trust product into a spot bitcoin ETF.

The D.C. circuit court reinforced its stance by formally mandating a re-review of Grayscale’s application based on the August ruling.

Grayscale previously partnered with the Bank of New York Mellon in July this year, designating BNY Mellon as the transfer agent for the trust’s shares.

The intention is to list shares on NYSE Arca under the symbol GBTC, contingent on the approval of the S-3 form and a separate 19b-4 filing from NYSE Arca, as detailed in the S-3 filing from October 19.

While Grayscale pursues this avenue, there are murmurs of other potential spot bitcoin ETF issuers engaging with the SEC.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.