Grayscale Files S-3 to Convert Bitcoin Trust into ETF

Grayscale Investments, a prominent player in the crypto asset management sector, has filed an S-3 application with the Securities and Exchange Commission (SEC) to convert its Grayscale Trust (GBTC) into a spot Bitcoin Exchange-Traded Fund (ETF). This announcement was made on Thursday.

The S-3 filing, which is a simplified version of the S-1 form, is part of Grayscale’s ongoing strategy to gain SEC approval for its Bitcoin ETF. This initiative positions Grayscale in competition with other major firms like BlackRock and Fidelity, who are also pursuing SEC approval for their own Bitcoin ETFs.

Since January 2020, Grayscale’s shares have been registered under the Securities Exchange Act of 1934, enabling the use of Form S-3. The company aims to list its shares on NYSE Arca under the ticker GBTC, contingent upon the acceptance of NYSE Arca’s Form 19b-4 application and the validation of the S-3 form.

The timing of this registration is particularly strategic, as it precedes a potential court decision from the U.S. Court of Appeals for the D.C. Circuit, which is expected to affirm a ruling made in August.

Established in 2013, Grayscale provides access to the digital economy through regulated investment products, offering investors single asset, diversified, and thematic exposure via Grayscale Securities, LLC. The firm’s application for SEC registration remains pending, which prevents any unauthorized sales or purchase offers until approval is obtained.

This development was among the key topics discussed at Benzinga’s Future of Digital Assets conference. SEC Chair Gary Gensler has previously compared the Bitcoin ETF review process to that of an initial public offering (IPO), highlighting the critical nature of regulatory compliance within the crypto industry.