News Summary

• Scott Johnsson, general partner at VB Capital, noted that while the SEC purports to stand for investor protection, the cash creation model could pose a greater risk to investors looking to gain exposure to Bitcoin through a spot ETF..
• Despite the fact that BDs and exchanges apparently believe they could comply with the rule and offer… pic.twitter.com/SdudYdsgoR“Despite all other spot commodity ETFs operating with in-kind models, this must be done in a novel way via cash and who knows if that will work,” wrote Johnsson..
• That said, still a mystery whether they will be allowed to go on day one of the Cointucky Derby https://t.co/Wm7TfD3zkPCash vs. in-kind creations have been an ongoing point of conflict between asset managers looking to launch a spot Bitcoin ETF and the SEC..
• Outside of Silbert stepping down, the most notable element of the amended S-3 filing was that Grayscale had “finally surrendered” to a cash creation model, according to senior Bloomberg ETF analyst Eric Balchunas..
• Some crypto market commentators speculate that Silbert’s departure could significantly increase the odds that Grayscale will successfully convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, currently awaiting a decision from the Securities and Exchange Commission..
• Grayscale has “finally surrendered” to cash creations in its amended filing to convert GBTC into a spot Bitcoin ETF..