- Mark Shifke will replace Barry Silbert as chairman of the board at Grayscale.
- The most noteworthy aspect was Grayscale’s “final surrender” to a cash creation strategy.
Concurrent with Barry Silbert’s announcement of his departure from Grayscale’s board of directors, crypto asset management firm Grayscale filed an updated S-3 with the U.S securities regulator. Silbert is the CEO of Digital Currency Group, the business’s parent company.
While the company waits for a judgment from the SEC, some crypto market experts believe that Silbert’s departure might greatly improve the chances that Grayscale will be able to transform its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Boosting Chances of ETF Clearance
Because of the SEC’s continuing investigation of Silbert and DCG, Lumida Wealth CEO Ramah Luwalia believes that Silbert probably resigned of his own will to increase the chances of the ETF clearance.
The organization announced that Mark Shifke, who had previously served as chief financial officer at DCG, will replace Silbert as chairman of the board at Grayscale in an 8-K filing to the SEC that was made on December 26. Silbert’s resignation was also acknowledged in the filing.
Moreover, according to senior Bloomberg ETF analyst Eric Balchunas, the most noteworthy aspect of the updated S-3 filing was Grayscale’s “final surrender” to a cash creation strategy. Conflicts between the SEC and asset managers seeking to create a spot Bitcoin ETF on cash vs. in-kind creations have persisted for some time.
An effort to better monitor Bitcoin when it leaves exchanges and reduce risks related to anti-money laundering (AML) and Know Your Customer (KYC) compliance has led some to believe that the SEC is trying to accomplish this goal by prohibiting broker-dealers from dealing directly with Bitcoin.
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