- Barry Silbert resigns from Grayscale’s board amid SEC probe.
- Grayscale aims to convert Bitcoin Trust into spot Bitcoin ETF.
- Grayscale revises S-3, hints at cash creation method for ETF.
Simultaneously with Barry Silbert’s declaration that he is stepping down from the board of directors at Grayscale, the cryptocurrency asset management company Grayscale submitted a revised S-3 form to the U.S. securities regulatory authority. Silbert holds the position of Chief Executive Officer at Digital Currency Group, which is the parent company of the business.
As the company anticipates a decision from the SEC, certain experts in the cryptocurrency market think that Silbert stepping down could significantly enhance the likelihood of Grayscale converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Enhancing ETF Approval Odds
Due to the ongoing probe by the SEC into Silbert and DCG, Lumida Wealth’s CEO Ramah Luwalia thinks that Silbert likely stepped down voluntarily to enhance the likelihood of the ETF being approved.
In a December 26 8-K filing submitted to the SEC, the company declared that Mark Shifke, formerly the chief financial officer at DCG, will succeed Silbert as the board chairman at Grayscale. The filing also confirmed Silbert’s resignation.
Additionally, senior Bloomberg ETF analyst Eric Balchunas pointed out that Grayscale’s ultimate acceptance of a cash creation method is the most significant element of the revised S-3 filing. The ongoing disputes between the SEC and asset managers who aim to establish a spot Bitcoin ETF based on cash versus in-kind creations have been ongoing for a while.
Some believe that the SEC’s goal to enhance the surveillance of Bitcoin as it departs from exchanges and to diminish the dangers associated with anti-money laundering (AML) and Know Your Customer (KYC) regulations is being pursued by preventing broker-dealers from engaging directly with Bitcoin.
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