Bitcoin ETF Approval Day Approaches What Does a Gray Form 8-A Filing Really Mean?

Grayscale has filed a Form 8-A with the SEC (U.S. Securities and Exchange Commission), indicating that they have made substantial progress in their quest to launch a spot BTC ETF.

The move on January 4th follows similar actions by Fidelity and Bitwise, highlighting a growing trend of financial companies aiming to offer spot ETFs.Bitcoin mining

The filing of Form 8-A is a key regulatory requirement for companies wishing to list on an exchange. In the case of ETFs, this indicates that the company is ready to trade on an exchange before the product is approved.

This move is a key part of the BTC ETF approval process, as evidenced by Valkyrie’s October 2021 filing of the BTC Strategy ETF (BITO)).

The grayscale decision is particularly noteworthy because it comes just one day after Fidelity’s 8-A filing and in advance of an important SEC deadline.Bitcoin Miner

The SEC is set to approve or reject 11 spot BTC ETF applications by January 10th, and Ark Invest will face a final decision deadline that is unlikely to be delayed any further after that date.

What Does Grayscale’s Form 8-A Filing Really Mean as Bitcoin ETF Approval Day Approaches?

Grayscale’s strategy includes converting its flagship GBTC fund to a spot BTC ETF.

An August court ruling found that the SEC’s initial denial of Grayscale’s spot BTC ETF application was “arbitrary and capricious.” The ruling requires the SEC to re-examine Grayscale’s application, which is in stark contrast to the agency’s previous approval of the futures BTC ETF.

Craig Salm, Grayscale’s chief legal officer, hinted at the development with a cryptic tweet minutes before the Form 8-A was released, stating, “Just filling out some forms.” His post quickly drew a great deal of attention from the Crypto asset community.

Bloomberg ETF analyst James Seyffart was cautiously optimistic, noting that the filings indicate that the first spot ETFs in the U.S. are likely to be approved. However, he also clarified that these 8-A filings, while necessary, do not guarantee approval.

Seyffart added regarding Fidelity’s Form 8-A yesterday, “These need to be completed prior to launch, but that doesn’t mean they’ve been approved or anything, my understanding is that it’s just a securities registration.”

“In order to go public, the ETFs still need 19b-4 approval, and they need a valid S-1 document approving the completion. There is no 19b-4 yet, the S-1 is just a preliminary document, and I’m still looking at next week.”

Walter Bloomberg echoed this and emphasized that the 8-A filings submitted by Fidelity and Grayscale mark progress towards possible approval of the spot ETF.

What Does Grayscale’s Form 8-A Filing Really Mean as Bitcoin ETF Approval Day Nears?

“Fidelity and Grayscale’s filing of Form 8-A shows the progress of the spot BTC ETF application. The filing of Form 8-A by an issuer signifies a registration that allows the issuer to trade on an exchange and signals progress towards potential approval of the Spot BTC ETF.”

Fidelity’s recent 8-A registrations, as well as the grayed-out registrations, come at a time when issuers are fully prepared to launch these potential spot BTC ETFs. These preparations include discussions on creation, redemption models and naming authorized participants.

Grayscale is reportedly in talks with JPMorgan Chase and Goldman Sachs about its role in the proposed spot BTC ETF.

These discussions, disclosed by Bloomberg, come on the heels of Grayscale’s recent revised S-3 filing with the SEC, which did not list authorized participants.

As the deadline for the SEC to make a decision on these ETFs approaches, Bloomberg’s ETF analysts, Seyffart and Eric Balchunas, currently still see a 90% chance of approval by January 10th.

According to sources, as NewsBTC reported today, an approval decision could be announced as early as tomorrow, and these ETFs could begin rolling out next week.