Grayscale Files for Bitcoin Adapters ETF Approval on NYSE Arca  

• The Grayscale Bitcoin Adapters ETF will invest at least 80% of its net assets in companies that have Bitcoin on their books. 
• To be eligible to use the service, a company shall be trading on a minimum market capitalization of $100 million and a minimum daily trading volume of $1 million. 
• Grayscale is one of the crypto ETFs under a lot of pressure from the SEC to enable new and innovative crypto ETFs. 

A projected BTC Adapter ETF launched in the United States is announced by an American-based crypto asset management firm Grayscale Investments Limited. The ETF, if accepted, will trade on the NYSE Arca and has been filed with the Securities and Exchange Commission. The move comes after the company had shown interest in diversifying its crypto ETFs in the alternative market. 

Indirect Bitcoin Exposure Through Public Companies 

The ETF will track shares of companies listed on public exchanges that have already incorporated Bitcoin into their treasury. The fund will invest at least 80 percent of assets in these companies so that the investors can get exposure to Bitcoin indirectly, the company said. The ETF may also allocate funds to alternative securities that mirror the underlying assets. 

Eligibility Criteria for Firms 

The filing specifies the criteria for inclusion in the ETF. Qualified enterprises are those that are listed on advanced stock exchanges and have a market value of capitalization not less than $100 million. Furthermore, it is required that the firm must have its shares that have traded with a frequency of at least $1 million for the last six months. Grayscale also noted that all securities to be included must have at least 10% of their outstanding shares available in the float. 

Targeted Companies for the ETF 

Firms expected to be on the ETF include MicroStrategy, Riot Platforms, Mara Holdings, MetaPlantis, and KULR Technologies. In a fresh purchase of Bitcoin, MicroStrategy has just bought 11,000 BTC further cementing the company’s status as one of the top corporate Bitcoin investors. The objectives of the ETF are aligned with the active Bitcoin strategy of the company. 

SEC Faces Growing Pressure Over ETF Filings 

The SEC continues to receive a wave of applications for Bitcoin-linked ETF products. Grayscale is also seeking approval for a Litecoin ETF alongside this filing. Additionally, other major players, such as BlackRock, have sought regulatory clearance for in-kind redemptions tied to their Bitcoin Trust products. 

The Grayscale’s Bitcoin Adapters ETF filing points to a new direction towards broader market involvement through unique crypto asset investment vehicles. The response of the SEC to the application will be carefully observed, as it will affect the further development of crypto ETFs in the United States.