Grayscale reportedly submitted an updated filing to the U.S. Securities and Exchange Commission (SEC) on the same day that CEO of parent company Digital Currency Group Barry Silbert announced his departure from Grayscale’s board of directors, according to Bloomberg analyst James Seyffart.
Analyst James Seyffart at Bloomberg stated:
“Even Grayscale is accepting the SEC’s Cash-only creation/redemption edict. Looks like they’re bending the knee.”
According to some cryptocurrency industry observers, Silbert’s resignation may make it more likely that Grayscale will be able to successfully convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Grayscale is still awaiting an SEC ruling on this matter.
According to Eric Balchunas, senior analyst for Bloomberg ETFs, the most significant aspect of the updated S-3 filing was that Grayscale had “finally given in” to the cash-generating concept, aside from Silbert’s resignation.
Silbert resigned from Grayscale Investments, the project’s subsidiary, on December 26. It’s unclear why Silbert decided to split from Grayscale. The billionaire was previously involved in a number of scandals.
Silbert was involved in a dispute between DCG and the Gemini cryptocurrency exchange from the end of 2022 to the beginning of 2023. In June 2023, he was under suspicion of financial fraud.