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ETF Update | BlackRock Meets with SEC, Grayscale Files Again, GBTC Discount Narrows to Just -9%

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ETF Update | BlackRock Meets with SEC, Grayscale Files Again, GBTC Discount Narrows to Just -9%

Bloomberg ETF analyst James Seyffart released a presentation on the meeting between BlackRock and the SEC, and briefly analyzed Grayscale's amendments to the ETF application. With the possibility of a narrow transformation into a spot ETF, the discount on GBTC has reached a two-year high, dropping to single digits.

BlackRock Meets with SEC

James Seyffart quoted a presentation of BlackRock meeting with the SEC, where the former introduced physically and cash-settled spot Bitcoin ETFs. From the presentation, it can be seen that BlackRock seems to lean towards issuing a physically settled spot Bitcoin ETF.

He stated:

Physically settled seems to be the clearest structure for BlackRock and investors, and BlackRock's approach is reasonable.

Attendees and presentation can be found here

Grayscale Updates Application Again

James Seyffart previously mentioned Grayscale meeting with SEC officials on the 22nd, and shortly after, Grayscale updated the application for a Bitcoin spot ETF here.

He believes that the updated document from Grayscale confirms the rumors of their meeting with the SEC, and further revisions were made based on the SEC's feedback.

Grayscale is currently discussing the conversion of GBTC with SEC officials, and the Ethereum futures ETF has been officially postponed.

Grayscale Changing GBTC Ticker to "BTC"?

Additionally, James Seyffart, when introducing the revised Grayscale application, initially titled his tweet as "Grayscale Changing GBTC Ticker to BTC."

However, he quickly realized his mistake, as the code has been "BTC" since Grayscale's application in October.

He later explained that Grayscale does have a filing for a global diversified Bitcoin ETF with the stock code as BTC, but it may not be launched.

Nevertheless, James Seyffart still believes that there is a high chance Grayscale will change the ticker to BTC for their spot ETF in the future.

GBTC Discount Hits Two-Year High

Amid the possibility of transitioning to a spot ETF, according to YCharts, the discount on GBTC has officially reduced to a single-digit -9.77%, marking the smallest discount in nearly two years, dating back to August 2021.