As the Bitcoin ETF approval date approaches, what does Grayscale's submitted Form 8-A mean?
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As the Bitcoin ETF approval date approaches, what does Grayscale's submitted Form 8-A mean?
GrayScale's decision is particularly noteworthy because it was made just one day after Fidelity submitted its Form 8-A and ahead of a significant SEC deadline.
Navigating Web3 tides with focused insightsSource: Bitcoinist
Compiled by: Blockchain Knight
Grayscale has filed Form 8-A with the SEC (U.S. Securities and Exchange Commission), signaling substantial progress in its efforts to launch a spot BTC ETF.
This move on January 4 follows similar actions by Fidelity and Bitwise, highlighting a growing trend among financial firms aiming to offer spot ETFs.
Filing Form 8-A is a key regulatory requirement for companies seeking to list on exchanges. In the case of ETFs, it indicates that the firm is preparing for exchange trading pending product approval.
This step is a critical part of the BTC ETF approval process, as demonstrated by Valkyrie's BTC Strategy ETF (BITO), which filed its 8-A form in October 2021.
Grayscale’s decision is particularly notable as it comes just one day after Fidelity filed its 8-A form and ahead of a crucial deadline for the SEC.
The SEC must approve or reject 11 spot BTC ETF applications by January 10, with Ark Invest facing a final decision deadline beyond which further delays are not possible.
Grayscale's strategy involves converting its flagship GBTC fund into a spot BTC ETF.
An August court ruling found that the SEC’s initial rejection of Grayscale’s spot BTC ETF application was “arbitrary and capricious.” This ruling required the SEC to reevaluate Grayscale’s application, contrasting sharply with the agency’s prior approval of futures-based BTC ETFs.
Minutes before the release of the 8-A filing, Grayscale’s Chief Legal Officer Craig Salm posted a cryptic tweet hinting at the development, saying: “Just filling out some paperwork.” His post quickly drew significant attention from the crypto community.
Bloomberg ETF analyst James Seyffart expressed cautious optimism, noting that these filings indicate a real possibility of approval for the first U.S. spot ETFs. However, he also clarified that while these 8-A filings are necessary, they do not guarantee approval.
Regarding Fidelity’s 8-A filing yesterday, Seyffart added: “These need to be completed before launch, but that doesn’t mean they’re approved or anything else—my understanding is this is merely a securities registration.”
“To list, the ETF still needs 19b-4 approval and an effective, fully approved S-1 filing. There is no 19b-4 yet, and the S-1 is only preliminary—I’m still watching developments next week.”
Walter Bloomberg agreed, emphasizing that the 8-A filings by Fidelity and Grayscale mark tangible progress toward potential approval of spot ETFs.
“Fidelity and Grayscale filing Form 8-A shows progress on spot BTC ETF applications. By submitting Form 8-A, issuers register their intent to trade on an exchange, marking advancement toward potential approval of spot BTC ETFs.”
Fidelity’s recent 8-A registration, along with Grayscale’s, comes as issuers make thorough preparations for launching these potential spot BTC ETFs. These include discussions on creation and redemption mechanisms and naming authorized participants.
Reports indicate Grayscale is negotiating with JPMorgan Chase and Goldman Sachs regarding their roles in its proposed spot BTC ETF.
These discussions, disclosed by Bloomberg, follow Grayscale’s recent revised S-3 filing with the SEC, which did not list any authorized participants.
As the SEC approaches its decision deadline on these ETFs, Bloomberg ETF analysts Seyffart and Eric Balchunas currently maintain a 90% probability of approval by January 10.
According to sources, as reported today by NewsBTC, an approval announcement could come as early as tomorrow, with these ETFs potentially launching next week.
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