Grayscale's Bitcoin Adapters ETF Filing
American crypto asset manager Grayscale Investments has filed with the Securities and Exchange Commission (SEC) for a new Bitcoin Adapters ETF. This ETF, planned for listing on NYSE Arca, represents a significant strategic move for Grayscale, a major proponent of alternative crypto ETF products.
Grayscale Bitcoin Adapters ETF: A Strategic Shift
The Grayscale Bitcoin Adapters ETF aims to track publicly listed companies employing a Bitcoin treasury strategy. If approved, the ETF will hold these companies' shares proportionally, offering investors indirect Bitcoin exposure.
The filing specifies that the fund will maintain at least 80% of its assets in these constituent shares. It also reserves the right to invest in alternative securities providing similar exposure.
The ETF will primarily invest in US and international companies with BTC holdings. Eligibility criteria include trading on a developed stock market, a $100 million market capitalization, and a six-month average daily trading volume of at least $1 million. All included securities must have a free float of at least 10%.
Here’s the strategy details. Will be an equity ETF that holds the stock of companies that hold Bitcoin as a part of their corporate treasury. pic.twitter.com/KVgUw5BViP
- James Seyffart (@JSeyff) January 24, 2025
This isn't Grayscale's only recent filing. They've also submitted an application for a Litecoin ETF. Grayscale's pioneering role in the digital currency space makes these developments significant for the entire industry.
Potential ETF Holdings
MicroStrategy, a business intelligence firm, is a prime candidate due to its substantial Bitcoin holdings (over 2% of the total supply). Their recent $1.05 billion BTC redemption for convertible notes further highlights their commitment to Bitcoin. Other potential inclusions are Riot Platforms, Mara Holdings, Metaplanet, and KULR Technologies, all known for their active Bitcoin acquisition strategies.
SEC Decision Under Scrutiny
The SEC's decision will be crucial. Recent filings for ETF-related rule changes, including BlackRock's application for in-kind redemptions for IBIT (iShares Bitcoin Trust), heighten the anticipation surrounding the SEC's approach. While various cryptocurrencies (XRP, Dogecoin, Solana) have seen similar filings, the outcome rests largely on the SEC's current stance.
The attention is on SEC commissioners Mark Uyeda and potentially Paul Atkins, and their decisions will significantly impact the cryptocurrency market.
Disclaimer: This content reflects the author's opinion and is subject to market conditions. Conduct thorough research before investing in cryptocurrencies. Neither the author nor the publication is responsible for personal financial losses.