Grayscale has filed an updated prospectus for its Bitcoin Covered Call ETF, focusing on enhanced management of Bitcoin exposure and Grayscale Bitcoin Trust.
Grayscale's Prospectus Update
Grayscale has submitted an updated prospectus for its Bitcoin Covered Call ETF. The new ETF will provide investors with necessary Bitcoin and GBTC exposure, also offering more revenue-generation options. According to Grayscale's prospectus, "The fund seeks to achieve its investment objective primarily through actively-managed exposure to Grayscale Bitcoin Trust (BTC) ('GBTC') and the purchase and sale of call and put options contracts utilizing GBTC as the reference asset." However, the fund still lacks a trading code.
SEC's Approval of New ETF Rules
Grayscale's prospectus submission follows a month after the SEC approved rule changes for ETF listings. The Securities and Exchange Commission approved new rules on October 18, enabling the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to offer options trading for various spot Bitcoin ETFs. The OCC announced its readiness to facilitate 'clearance, settlement, and risk management' for spot Bitcoin ETFs following a CFTC staff advisory.
Grayscale's Future Plans
Grayscale is laying the groundwork for listing ETFs not solely related to Bitcoin. The company is collaborating with NYSE Arca to earn approval for a range of ETFs that are not necessarily tied to Bitcoin.
The updated Bitcoin ETF prospectus from Grayscale could strengthen the company's position in the Bitcoin ETF market and aid in expanding investment opportunities and tools within the crypto space.
