- Grayscale Investments has signed Jane Street and Virtu Financial as authorized participants for its pending spot bitcoin ETF.
- The deadline for Grayscale’s application to convert its bitcoin funds into an ETF is July 6.
- If the SEC rejects Grayscale’s application, or delays further, the fund is set to sue the SEC.
grayscale investing announced It will work with market makers Jane Street and Virtu Financial as authorized participants for its spot bitcoin exchange-traded-fund (ETF), if approved.
Should the Securities and Exchange Commission (SEC) approve Grayscale’s application to convert its Bitcoin Trust ($GBTC) into an ETF, both market makers will be able to create and redeem shares of the ETF. However, this intended partnership depends on the SEC making a decision regarding the application of Grayscale, which currently has a deadline of July 6, 2022.
Ahead of the July deadline, Grayscale CEO Michael Sonnenshin issued an open letter to the fund’s investors addressing concerns about the upcoming decision. Sonnenshin also reminded Grayscale investors of the steps the company has taken to ensure proper compliance.
“Grayscale is clearly committed to turning GBTC into an ETF. We are leaving no stone unturned,” Sonnenshin said. “We have leveraged the full resources of the firm behind this effort and, in a true grayscale fashion, we will always act in the best interest of our investors.”
As of now, Grayscale has announced its intention to convert the fund to an ETF in April 2021. Then, the company formally submitted a request later that year in October. The decision, which was expected to take less than two weeks, is now approaching its 240-day deadline. An SEC commissioner noted this continued delay and the SEC’s refusal to accept “legendary” spot bitcoin ETFs.
Therefore, Grayscale has taken extra efforts to ensure that the fund is ready to prosecute for any further delays by hiring one of the top legal minds from President Obama’s administration.