Grayscale Bitcoin Mini Trust ETF Gets SEC Approval for Trading on NYSE Arca
The Securities and Exchange Commission (SEC) has approved Grayscale Bitcoin Mini Trust ETF for listing and trading on NYSE Arca. This decision follows a detailed review process in which the SEC evaluated whether the proposal met the standards set out in the Securities Exchange Act, particularly Section 6(b)(5). This section mandates that the rules of a national securities exchange must be designed to prevent fraud and manipulation, as well as protect investors and the public interest.
A key element in the approval was the establishment of a comprehensive surveillance-sharing agreement between NYSE Arca and a regulated market of significant size. This agreement is crucial for detecting and deterring fraudulent activities related to Bitcoin, the underlying asset of the trust. While the SEC noted that this is not the only way to meet regulatory requirements, it played a significant role in their approval.
The SEC also specified conditions for the listing and trading of the Grayscale Bitcoin Mini Trust. These conditions include requirements for transparency in portfolio holdings, pricing information, and the dissemination of intra-day indicative values. The ETF must provide real-time pricing information via the Consolidated Tape Association and ensure public accessibility to this information.
Additionally, the proposal ensures that shares of the Grayscale Bitcoin Mini Trust are treated as equity securities, subjecting them to existing rules governing equity trading on NYSE Arca. The SEC highlighted the importance of these measures in promoting fair disclosure of information, preventing trading when transparency cannot be assured, and safeguarding material non-public information. These steps are essential for maintaining a fair and orderly market for the trust’s shares.
