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Grayscale Investments shocked the crypto ecosystem on Tuesday, Dec. 26, when Barry Silbert, the company’s chairman, stepped down from the Board of Directors. While this dramatic change is coming at a crucial time for the firm, top market investor and CEO of Lumida Wealth Management Ram Ahluwalia believes this move might have just increased the chances of Grayscale Investments getting its application to convert its flagship Bitcoin Trust into a spot Bitcoin Exchange Traded Fund (ETF).
Alex DovbnyaTo Ahluwalia, Barry Silbert’s resignation gives Grayscale greater autonomy that might also enhance the confidence of the United States Securities and Exchange Commission (SEC) as it commences its final review of the many spot Bitcoin ETF applications on its desk.
Barry Silbert’s presence in the company might have complicated issues considering he is undergoing a series of investigations for his role in the implosion of Genesis Global for failing to disclose the health status of the parent company, the Digital Currency Group (DCG).
Ahluwalia believes that with the stepping down of Barry Silbert and the confidence in Michael Sonneshein, the odds of approval of the spot Bitcoin ETF application from Grayscale Investments are higher.
Grayscale made the right concessions
In a bid to enhance its chances of achieving approval in the first wave of applications that will be considered, Grayscale Investments has amended its S-3 filing with the SEC, detailing its readiness to embrace the recommended "Cash Creates" redemption model from the markets regulator.
As reported earlier, the SEC gave a Dec. 29 deadline to every Bitcoin ETF applicant who wishes to be considered in the first wave of approvals projected to be in January. Per the update, the SEC reportedly made its position clear that the in-kind redemption model prioritizing Bitcoin may not be approved, thus triggering the unprecedented change in stance from Grayscale Investments.
Alex Dovbnya
Arman Shirinyan
Dan Burgin