© Reuters.
NEW YORK – Grayscale Investments, a leading digital currency asset manager, has amended its S-3 filing with the Securities and Exchange Commission (SEC), moving to a liquidity creation model for its Exchange Traded Fund (AND F) . The move follows the resignation of Barry Silbert from the Digital Currency Group (DCG) board and the appointment of CFO Mark Shifke as its new chairman. The crypto community views Silbert’s departure as a significant event, with some speculating that it could be part of a pre-arranged plan with the SEC to facilitate approval of the ETF conversion.
The updated Grayscale Bitcoin Trust (GBTC) filing is currently under review by the SEC. This strategic shift is interpreted by industry experts as an effort to increase the chances of obtaining regulatory approval for the ETF conversion. Grayscale’s decision to adopt a liquidity creation model departs from the traditional in-kind approach used by most spot commodity ETFs, sparking debates over investor risks and compliance with trading protocols. anti-money laundering by the SEC.
Mr. Shifke’s appointment as chairman comes amid an ongoing SEC investigation, the details of which have not been disclosed. This change in direction and strategy at Grayscale marks a crucial turning point for the company, which must deal with the complexity of regulations in the rapidly evolving cryptocurrency market.
Grayscale’s actions demonstrate a proactive approach to meeting regulatory requirements and adapting to the changing landscape of digital asset management. The investment community is closely watching the SEC’s reaction to this update, knowing that it could have significant consequences for the future of Bitcoin ETFs and the broader cryptocurrency market. The CEO of Lumida Wealth expressed his belief that Silbert’s departure could help gain SEC approval for Grayscale’s proposed changes.
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