Grayscale moves along bitcoin ETF bid with ‘procedural milestone’

This latest filing kicks off the firm’s conversations with another SEC division as its suit against the regulator wraps up, a person familiar with the matter says

article-image

vantireban/Shutterstock modified by Blockworks

share

Grayscale Investments is looking to advance its bid to launch a spot bitcoin ETF after the Securities and Exchange Commission opted not to appeal the company’s August court win. 

The crypto-focused asset manager continued its quest to convert its Grayscale Bitcoin Trust (GBTC) to an ETF — an effort the SEC blocked, and was subsequently sued for last year — with a new filing Thursday. 

The action is “more of a procedural milestone” for the firm to kick off conversations with another SEC division as the lawsuit wraps up, a person familiar with the filing told Blockworks. 

The DC Circuit Court of Appeals ruled in August that the SEC’s actions in denying this conversion, but allowing bitcoin futures ETFs to trade, was “arbitrary and capricious.” The regulator did not challenge that decision, as the firm — and industry — now await a final mandate by the court this week. 

Read more: ‘Game on’: SEC opts not to appeal Grayscale’s court win

In the meantime, Grayscale filed with the SEC Thursday to register shares of the GBTC under the Securities Act of 1933 via an S-3 form.

ETF issuers typically file a registration statement on Form S-1 for the initial public offering of equity securities registered under the act. Grayscale was eligible to use the S-3 form — a more simplified document — in part because GBTC became an SEC reporting company in January 2020, the company said in a Thursday blog post.

The filing is another step toward getting GBTC converted to an ETF — a prospect industry watchers have said they believe became more likely after the Court of Appeals’ August ruling.

Ultimately, three things must happen for the conversion to occur, Grayscale noted in the post. NYSE Arca’s 19b-4 filing — the subject of what was litigated in court — must be approved. Grayscale also needs to obtain Regulation M relief and have its S-3 form declared effective by the SEC.  

While the SEC’s division of trading and markets reviews the 19b-4 filing and grants Regulation M relief, the regulator’s division of corporation finance reviews S-1 and S-3 filings. 

“Importantly, GBTC is ready to operate as an ETF upon receipt of these regulatory approvals, and on behalf of GBTC’s investors, Grayscale looks forward to working collaboratively and expeditiously with the SEC on these matters,” the company said in the blog post. 

An SEC spokesperson did not immediately return a request for comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

“We are open 24/7/365, but good luck getting an employee to pick up.”

article-image

BitVM3’s “garbled circuit” approach faces critical security and scaling research before it will be practical

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana