Grayscale's Bitcoin ETF Update: Key Players

Grayscale, the cryptocurrency asset manager, has submitted a revised application for a Bitcoin exchange-traded fund (ETF) that does not include details about authorized participants.

Eric Balchunas, senior ETF analyst at Bloomberg, highlighted the revised filing on X (formerly Twitter). The company clarified that authorized participants in its proposed ETF would exclusively transact in cash for shares.

However, Balchunas also points out that in the updated documentation submitted to the United States Securities and Exchange Commission (SEC), Grayscale omitted the names of its authorized participants.

On Dec 29, Cointelegraph disclosed that seven companies competing to introduce the inaugural U.S. Bitcoin ETF products submitted updated versions of Form S-1 applications.

In the latest submissions, Fidelity, WisdomTree, and Invesco Galaxy disclosed the entities authorized to participate. Invesco Galaxy chose Virtu and JPMorgan, whereas WisdomTree and Fidelity listed Jane Street Capital.

BlackRock, Fidelity Lead ETF Approval Race

Financial institutions or companies with the authority to create and redeem shares of an ETF are known as authorized participants. Grayscale aimed to list Jane Street and Virtu as its ETF participants in June 2022.

Balchunas went on to say that he didn’t know why Grayscale had purposefully left out its approved participants while other companies had provided clarification on these points.

Yes, and they tweeted that they have one. But from what I gather (in a Philly accent), it’s not documented yet (which the SEC wants). Until we see it officially, we’re not considering any horse as official. Besides, BlackRock, Fidelity, and others have done it, so why not just get it done?” expressed Balchunas.

On Dec 27, Grayscale filed an updated S-3 submission with the SEC, coinciding with the announcement of Barry Silbert’s resignation from the board of directors at Grayscale. Silbert, the CEO of Grayscale’s parent company, Digital Currency Group, stepped down on the same day.

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