Crypto asset manager Grayscale filed a revised S-3 filing with the United States Securities and Exchange Commission (SEC) on Dec. 26 to comply with the regulator’s demands for cash-only creation for the fund redemptions.
This amendment means Grayscale will facilitate fund creation and redemption using cash, mirroring similar decisions taken by other spot Bitcoin ETF applicants, including BlackRock.
Eric Balchunas, Bloomberg’s Senior ETF analyst, characterized Grayscale’s revised submission as a crucial final step toward the approval of converting its Bitcoin Trust into an exchange-traded fund (ETF).
Over the past weeks, the SEC has insisted that ETF applicants handle funds in a specific way, favoring cash creation over the in-kind method.
Usually, traditional ETFs facilitate “in-kind” transactions, permitting market makers to swap the underlying asset for the ETF shares directly. In contrast, the “cash create” method necessitates issuers to exchange cash for the ETF sha
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