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In a recent X (formerly Twitter) exchange, Nate Geraci, President of the ETF Store and host of the ETF Prime podcast, and Scott Johnsson, finance lawyer at Davis Polk, dissected the potential for Grayscale to make a daring move regarding the uplisting of its spot Bitcoin ETF to the New York Stock Exchange (NYSE). Their conversation revolved around the possible advantages, risks, and implications of such a decision. Can Grayscale Sidestep The SEC? Geraci initiated the discussion by suggesting a daring strategy: “Interesting hypothetical play for Grayscale… Just go ahead & uplist GBTC to NYSE now. Make SEC force delisting & ask for forgiveness later (or just point to court victory). Obviously we need NYSE & market makers/APs to go along (probably the trickiest part), but what’s the risk at this point?” Johnsson responded with skepticism about NYSE’s willingness to support Grayscale’s bold Bitcoin ETF move, pointing out the need for an effective registration statement for the ETF, which Grayscale currently lacks: “I had a similar thought and struggle to imagine NYSE Arca going along with this. Still need an effective registration statement as well for the ETF, which they don’t have.” In defense of his stance, Geraci highlighted the SEC’s exceeded time frame, implying the ETF has been “deemed approved.” He questioned the risks involved and emphasized the possible rewards for the NYSE: “NYSE shows they go to bat for ETF issuers…They obviously want listings/volume. Volume they’d clearly get with the first mover GBTC ETF. Goodwill with prospective ETF issuers = priceless. Listings would increase IMO.” Johnsson conceded to some of Geraci’s points but remained skeptical, stating: “I’ll buy that. Think SEC still has enough arrows in the quiver to tilt the calculus against such a move regardless of things like disclosure review.” In a subsequent comment, Geraci emphasized…

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Filed under: News - @ October 19, 2023 9:14 am