- Grayscale Investments is engaged in discussions with U.S. financial service providers.
- The asset management firm seeks approval for a Bitcoin ETF from the U.S. SEC.
- Grayscale has yet to name authorized participants for its proposal.
As the deadline for Bitcoin ETFs approaches, issuers are bolstering efforts to address the Securities and Exchange Commission’s (SEC) regulatory concerns to secure a positive verdict. The commission has introduced additional requirements, and applicants are leaving no stone unturned in vying for their spots in the race for approval.
In line with this, Grayscale, one of the fourteen applicants, has now initiated discussions with two U.S-based financial services firms to fill a key void in its proposal.
Grayscale Positions for Bitcoin ETF Approval
According to a Bloomberg report on Wednesday, January 3, Bitcoin ETF applicant Grayscale Investments has met with JPMorgan and Goldman Sachs to pursue an authorized participant.
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The asset manager, which recently raised flags for not listing authorized participants in its December 29 amendment, is seeking to engage the services of the final institutions to create and redeem Grayscale’s Bitcoin ETF shares.
If named, JPMorgan and Goldman Sachs would generate new shares when demand is high and redeem them when investors wish to liquidate their positions.
Grayscale is not the only firm to turn to financial institutions. BlackRock recently named JPMorgan an authorized participant for its own Bitcoin ETF proposal.
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The firm’s efforts reflect a broader trend among Bitcoin ETF proposers as each strives to align with the SEC’s requirements in hopes of a positive decision.
Bitcoin ETFs: To Be or Not to Be (Approved)?
The mounting anticipation for the SEC’s decision has spurred a myriad of speculations among investors. While many are optimistically betting on approval and its resulting benefits, others remain doubtful, predicting a likely rejection.
One such detractor is Matrixport, which released a report on January 3 stating that the SEC’s reluctance and unwelcoming approach to the crypto industry might result in the rejection of all the applications.
Despite the report’s assertions, industry analysts have countered the predictions with more discerning factors.
Weighing in on the predictions, Bloomberg analyst Eric Balchunas contended that the intense engagements among the ETF proposers and the commission point to chances of approval, adding that three of the decision-makers at the commission are onboard for a green light.
Fox Business has also underscored the potential for approval by the end of the week. The report stated that the SEC held meetings with CBOE, NY Stock Exchange, and Nasdaq regarding Bitcoin ETFs, and a decision could be made before the January 10 deadline.
On the Flipside
- Grayscale’s CEO recently expressed optimism for approval, foreseeing a substantial influx of $30 trillion into the industry.
- The projections of a likely Bitcoin ETF rejection rippled FUD among inventors, causing an 8% decline in Bitcoin price.
- The SEC’s unpredictable nature adds to the uncertainty, making it challenging to predict a definite approval.
Why This Matters
Despite conflicting opinions and uncertainties, the continuous dialogue and efforts suggest a commitment from the SEC and Bitcoin ETF proposers toward achieving approval.
Read more on the projections as the deadline looms:
Bitcoin ETF Poised for Rejection by SEC? $36K Projected
Industry players are positioning to leverage market movements:
Michael Saylor Offloads MicroStrategy Shares to Buy Bitcoin
