Grayscale’s Bitcoin ETF plan takes a turn with Silbert’s resignation
Key Takeaways
- Grayscale files amended S-3 filing for Bitcoin ETF coinciding with Barry Silbert’s resignation from the company.
- It raises speculation that Silbert’s resignation is part of a strategy to increase the ETF’s chances of SEC approval amid the ongoing SEC investigation.
- With the SEC focused on protecting investors, Grayscale’s shift from ETF filings to a cash-generating model raises questions about its viability and potential risk to investors.
Grayscale’s Amended S-3 Document Filed with the SECSubmit same day Barry Silverbert’s resignation It marks a pivotal moment in his search for a seat on Grayscale’s board. Bitcoin ETF.
Ramah Luwalia, CEO of Lumida Wealth Guess Silbert’s departure was a strategic move This is intended to improve the prospects for ETF approval given the SEC’s ongoing investigation into Silbert and DCG.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
Adam Cochran, partner at Cinneamhain Ventures, also proposal that Silverbert’s resignation may have been part of the agreement between Grayscale and the SEC ahead of the ETF conversion request.
Silbert’s departure was made official by: 8-K filed with SEC on December 26thwith Mark SchiffkeDCG’s Chief Financial Officer will succeed Silbert as Chairman of Grayscale’s Board of Directors.
The most notable changes in the revised S-3 filing include: Grayscale’s transition to a cash generation model. This adjustment is seen as a strategic concession by Grayscale in its pursuit of a spot Bitcoin ETF.
Eric Balchunas, Bloomberg ETF senior analyst, said: Observe Grayscale has “finally surrendered” to this model.
Unlike in-kind generation, cash generation means: New shares of spot Bitcoin ETFs can only be created or redeemed through cash transactions..
The SEC’s stance on preventing broker-dealers from handling Bitcoin directly is: Oversight and compliance with anti-money laundering and know-your-customer regulations.
But Scott Johnsson, general partner at VB Capital, said: raises concerns Regarding the SEC’s approach, the SEC claims to prioritize investor protection; The cash generation model may pose greater risk for investors seeking exposure to BTC through spot ETFs..
He emphasizes that the transition to cash generation is a new and uncertain endeavor, as most other commodity ETFs operate on a spot model.
Nonetheless, the cryptocurrency community is eagerly awaiting the results as the SEC evaluates Grayscale’s ETF application. Important Steps to Make Bitcoin Investing More Accessible through traditional financial markets
Ain is a senior cryptocurrency researcher. Her vast experience with content related to cryptocurrency and blockchain technology allows her to identify key information that should be presented to learners and ensure the validity of the data collected.
With a degree in New Media Studies, she has developed an extensive repertoire of skills to educate people through new, research-proven research models based on reasoning and human long-term memory.
Ain approaches everything with great care. Her main goal is to remove the ambiguity surrounding many Web3 concepts and guide content writers in presenting difficult cryptography-related concepts in an easy-to-understand manner.
Although content strategy is her main passion, Ain also enjoys reading fantasy books and watching superhero movies.
