New high for the Bitcoin ETF race

SEC sets final deadline for Bitcoin Spot ETF applicants. Grayscale has begun restructuring its staff for this purpose.

Preparations for a Bitcoin Spot ETF findings in final stages. The U.S. Securities and Exchange Commission (SEC) has given applicants a final deadline by which amendments can be filed with the authority. This was reported by Reuters.

Persons familiar with the matter told the news agency of an intensive dialogue between the SEC and representatives of BlackRock, ARK Investments, 21 Shares and Grayscale. The SEC informed the candidates that changes can be made until December 29, which is next Friday. If the deadline is missed, candidates will not be eligible for the first wave of licenses, sources said. Market observers and experts expect the green light on Jan. 10 next year. That is when the first batch of Bitcoin Spot ETFs is expected to make its stock market debut.

SEC demands additional cash reserves

In recent weeks, there have been repeated made changes to applications from BlackRock and other opportunity makers. One concern was the type of issuance of the ETF shares. The SEC clearly favored a cash variant. After lengthy discussions, the applicants finally relented. Shares are now issued as follows:

When de-+ creating new ETF shares, the parties involved (so-called "authorized participants") must now hold cash reserves equal to the purchase price in addition to the Bitcoin purchased. These must then be transferred to the issuer. In exchange, the issuer transfers the shares to the affected parties.

The extra cash reserve makes the issue more expensive for providers. However, one thing is now clear: the fact that providers must hold Bitcoin will not change.

Grayscale CEO sacrifices himself for Bitcoin ETF

One provider that resisted this option for a long time was Grayscale. However, the company, part of the struggling Digital Currency Group (DCG), eventually bowed to the regulatory will. In the latest version states, among other things, "The creation and redemption of the shopping cart is done through cash orders, which the authorized party deposits or accepts into the cash account."

The largest digital asset manager is also reorganizing its staff. Barry Silbert, DCG's CEO, is stepping down as Grayscale's chairman of the board as of Jan. 1. This is according to a SEC document. His place will be taken by DCG CFO Mark Shifke.

The reason for the resignation remains unknown. According to rumors, the resignation is part of a deal with the U.S. Securities and Exchange Commission to speed up approval for the conversion of its own Bitcoin Trust into an ETF. Grayscale wants to be part of the group that gets the green light first.

Bary Silbert has been mostly in the news in recent months because of legal disputes with Gemini. The background were outstanding obligations of cryptocurrency lender Genesis, a subsidiary of DCG, to the Winklevoss twins' crypto exchange. Genesis has since filed for bankruptcy.