The SEC has approved Grayscale’s 19b-4 application for a mini spot BTC ETF.
The approval of S-1 filing is pending with the regulator.
The new shares of the mini BTC ETF will also be distributed to the holders of GBTC.
The U.S. Securities and Exchange Commission (SEC) has approved the application submitted by Grayscale for a spot Bitcoin exchange-traded fund (ETF) on Friday, further solidifying the demand for Bitcoin-associated investment products.
The regulator approved the 19b-4 application submitted by Grayscale for the Grayscale Bitcoin Mini Trust, which will trade under the ticker BTC. Notably, this investment product is a “spin-off” of the digital asset management firm’s original spot Bitcoin ETF, GBTC. The new shares of the product will be distributed to holders of the GBTC spot BTC ETF, as it contributes a certain number of BTC to the mini ETF, as per a filing submitted in March. The SEC submitted a document on Friday, saying:
“The Commission therefore finds that the Proposals, as with other ETPs that the Commission has approved are reasonably designed to promote fair disclosure of information that may be necessary to price the shares of the Trusts appropriately, to prevent trading when a reasonable degree of transparency cannot be assured, to safeguard material non-public information relating to the Trusts’ portfolios, and to ensure fair and orderly markets for the shares of the Trusts.”
Notably, the digital asset firm awaits the registration statement to become effective for the Grayscale Bitcoin Mini Trust, meaning that the approval of the S-1 filing is still pending with the SEC. Additional details regarding the trading of the new product on NYSE Arca will be outlined in the near future.
The #SEC has approved Grayscale’s new spot BitcoinETF, the Grayscale Bitcoin Mini Trust (BTC), for listing on NYSE Arca. This milestone allows Grayscale to spin off part of its flagship Bitcoin fund into the new Mini Trust. 📊 #BitcoinETF #Crypto #CryptoNews pic.twitter.com/rfRfkSJdlR
— 1ATH.Studio (@1ATHStudio) July 27, 2024
Grayscale also got its application approved for the conversion of its Ethereum product into a spot ETH ETF almost a week ago and the product is trading under the ticker ETHE.
According to the data from CoinMarketCap, Bitcoin rose almost 2% and has successfully reclaimed the $68,000 price level. At the time of publication, the leading digital asset was trading at $68,200 with a 28.64% decline in trading volume over the past 24 hours.
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