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- 1 After amendment in S-3 filing, Grayscale resubmitted its application for spot ETFs conversion.
- 2 Bitcoin price has shown significant movement in the last three months of 2023.
- 3 The refiling was done following the resignation of Barry Silbert and joining of Mark Shifke.
Grayscale Investment refiles spot ETF application following the departure of the chairman, Barry Silbert. Mark Shifke occupies the vacant position of Silbert.
In the past few months, the entire crypto market performed positively, and Bitcoin crossed the much-awaited milestone of $44k. When writing, it was trading at $43,018.
After the resignation of Silbert, the new filing was done after the necessary changes in the S-3 filing. Silbert is one of the most famous cryptocurrency enthusiasts who made billions from crypto.
As per the reports of Forbes, Barry has a net worth of $3.2 Billion, which makes him one of the wealthiest men in the crypto sector.
Some cryptocurrency market observers believe Silbert’s resignation may boost the possibility that Grayscale will successfully convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, which is presently awaiting a decision from the Securities and Exchange Commission (SEC).
Silbert’s resignation was announced in an 8-K filing to the SEC on December 26, with the business declaring that DCG’s chief financial officer, Mark Shifke, will follow Silbert as Grayscale’s board chairman.
According to senior Bloomberg ETF analyst Eric Balchunas “The most important aspect of the updated S-3 filing, apart from Silbert’s resignation, was that Grayscale had “finally surrendered” to a cash generation strategy.”
The SEC has dismissed all spot bitcoin ETF applications, including Grayscale, citing applicants’ failure to demonstrate their ability to safeguard investors from market manipulation.
Grayscale wished to transform its Bitcoin trust into an ETF, allowing investors to trade shares more freely than the closed-end trust now allowed.
Inflow of Funds Increased Due to ETFs Applications
According to a recent CoinShares survey, overall crypto investment products showed a tremendous increase, with a general inflow of $103 Million in the week ending December 22, 2023, compared to a $16 Million outflow the previous week.
The massive increase in investment is regarded as a result of the market commotion caused by spot ETFs and the debut of BlackRock, which drew investors’ attention to the currency’s impending prospects.
While a spot Bitcoin ETF has never been approved in the United States, such a product is far from novel worldwide. Investors in other jurisdictions, including Canada, Australia, and Germany, may already purchase shares in spot Bitcoin ETFs.
Bitcoin Performance Post- ETF Stir
In the past few months, Bitcoin has shown major improvement and in November 2023, it crossed the milestone of $44k. At the time of writing, BTC was trading at $43,107 with a surge in trading volume.
Other than Bitcoin, Ethereum and Solana have also achieved appreciable milestones in the past few months.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
