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# Grayscale Meets with SEC to Discuss Converting Bitcoin Trust to ETF

Executives from Grayscale, the crypto asset manager, have had discussions with the Securities and Exchange Commission regarding converting their flagship Bitcoin trust into a spot Bitcoin exchange-traded fund (ETF). This indicates a potential move towards a new and significant development in the cryptocurrency market.

The meeting, which occurred on November 20, involved several key Grayscale executives, including CEO Michael Sonnenshein, legal chief Craig Salm, and ETF head Dave LaValle. Additionally, the firm was represented by five individuals from the Davis Polk law firm. The discussions specifically focused on NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.

Grayscale also revealed that it entered into a Transfer Agency and Service Agreement with BNY Mellon, a move that was shared by Bloomberg ETF analyst James Seyffart. The agreement outlines the bank’s role as the agent for the Grayscale Bitcoin Trust (GBTC), handling the issuance and redemption of shares and managing shareholder accounts.

The Securities and Exchange Commission’s division of trading and markets has the authority to approve or deny 19b-4s, which are forms used to inform the SEC of proposed rule changes by self-regulatory organizations, as highlighted in a tweet by Seyffart. Furthermore, it was noted that Grayscale’s agreement with BNY Mellon was anticipated and does not necessarily indicate an imminent conversion of the GBTC.

Moving forward, the potential conversion of the GBTC to an ETF was described as an ‘uplisting,’ a term that suggests a positive outlook for Grayscale’s plans, according to ETF Store President Nate Geraci. He expressed confidence in Grayscale’s ability to dominate the ETF category if they are able to ‘uplist’ GBTC to NYSE Arca concurrently with other issuers launching spot BTC ETFs, and if they remain competitive on fees.

Grayscale’s recent submission of an S-3 form registration statement to the SEC reflects its intention to list the shares of GBTC on NYSE Arca. This came after a U.S. appellate court mandated the SEC to review its previous decision to deny Grayscale’s bid to convert the GBTC to a spot ETF. Notably, Grayscale is among a group of major asset managers, including BlackRock and Fidelity, seeking SEC approval for spot Bitcoin ETFs, indicating a growing interest in cryptocurrency investment opportunities.

In light of these developments, the AI legalese decoder has the potential to assist in the understanding and interpretation of the legal terminology and complexities involved in the regulatory processes related to the conversion of cryptocurrency trusts to ETFs. With its ability to decode and simplify legal jargon, the AI legalese decoder can provide valuable insights for individuals and organizations navigating such legal and regulatory landscapes in the cryptocurrency industry.

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