Spot BTC ETF approval date is approaching. What does it mean for Grayscale to submit Form 8-A?

Compilation: Blockchain Knight

Grayscale has filed a Form 8-A with the SEC (U.S. Securities and Exchange Commission), indicating they have made substantial progress in their quest to launch a spot BTC ETF.

The move on January 4follows similar actions by Fidelity and Bitwise, underscoring a growing trend among financial firms aiming to offer spot ETFs.

Filing Form 8-A is a key regulatory requirement for companies wishing to list on an exchange. In the case of ETFs, this indicates that the company is ready to trade on the exchange before the product is approved.

This move is a key part of the BTC ETF approval process, as evidenced by Valkyrie’s submission of the BTC Strategy ETF (BITO) in October 2021.

Grayscale’s decision is particularly noteworthy because it comes just one day after Fidelity filed its 8-A filing and comes before an important SEC deadline< /strong>.

The SEC will approve or reject 11 spot BTC ETF applications before January 10, and Ark Invest will face a final decision deadline, after which no further delays are possible.

Grayscale’s strategy includes converting its flagship GBTC fund into a spot BTC ETF.

A court ruling in August found that the SEC’s initial rejection of Grayscale’s spot BTC ETF application was “arbitrary and capricious.” This ruling requires the SEC to re-examine Grayscale’s application, which is in sharp contrast to the agency’s previous approval of a futures BTC ETF.

Grayscale's chief legal officer, Craig Salm, hinted at the development in a cryptic tweet minutes before the release of Form 8-A, saying: "Just filling out some forms." His post quickly attracted a lot of attention from the Crypto asset community.

Bloomberg ETF analyst James Seyffart is cautiously optimistic, pointing out that these applications indicate that the first US spot ETFs may be approved. However, he also clarified that although these 8-A applications are necessary, there is no guarantee that they will be approved.

Seyffart also added regarding Fidelity's Form 8-A yesterday: "These need to be completed before launch, but that doesn't mean they have been approved or anything, my understanding is that it is just A securities registration."

"In order to list, ETFs still require 19b-4 approval, and they need a valid, approved S-1 filing. There is currently no 19b-4 filing, S- 1 is just a preliminary filing and I'm still watching what happens next week."

Walter Bloomberg agreed,and emphasized that the Form 8-A filings by Fidelity and Grayscale marked the spot Progress on possible ETF approval.

“Fidelity and Grayscale’s submission of Form 8-A shows the progress of the spot BTC ETF application. Submission of Form 8-A by the issuer means that the issuer is allowed to trade on the exchange, marking the spot Progress toward possible approval of a BTC ETF.”

Fidelity’s recent 8-A registration, as well as Grayscale’s registration, come as issuers are well prepared to launch these potential spot BTC ETFs ongoing. These preparations include discussing creation, redemption models, and naming authorized participants.

Grayscale is reportedly in talks with JPMorgan and Goldman Sachs over its role in a proposed spot BTC ETF.

These discussions disclosed by Bloomberg follow an amended version of Grayscale’s recent S-3 application filed with the SEC, which did not list authorized participants.

As the deadline for the SEC to make a decision on these ETFs approaches, Bloomberg ETF analysts Seyffart and Eric Balchunas still believe that the probability of approval before January 10 is 90%.

According to sources, as NewsBTC reported today, the approval decision may be announced as early as tomorrow, and the ETFs may begin launching next week.