Grayscale Pushes for Bitcoin Adapters ETF Amid SEC Scrutiny  

• Grayscale’s Bitcoin Adapters ETF aims at indirect exposure through companies with a high Bitcoin exposure. 
• Only the companies that meet market capitalization and trading volume criteria are allowed to participate. 
• The current position of the SEC on multiple ETF filings will determine the future of crypto investment products. 

Grayscale Investments, an American firm that deals in cryptocurrencies, has filed a registration statement with the SEC for the new Bitcoin Adapters ETF. The new fund will trade on NYSE Arca, as Grayscale keeps on seeking new ways of investing in digital currencies to increase demand. 

The Bitcoin Adapters ETF seeks to track the companies that have at least one billion dollars in Bitcoin on their balance sheets. The fund will allocate a minimum of 80% of its total assets in Bitcoin stocks of companies embracing the Bitcoin Treasury Reserve strategy. The rest of the amount could be in different securities which are used for similar purposes. 

Eligibility Criteria for Constituent Companies 

The Grayscale’s filing provided some details of the rules that govern companies that are listed in the ETF. Firms eligible for inclusion have to be listed on developed stock exchanges and have a minimum market capitalization of $100 million. 

MicroStrategy, a business intelligence firm known for its aggressive Bitcoin acquisition strategy, stands out as a likely candidate for inclusion. The company recently purchased 11,000 BTC, increasing its holdings to over 2% of the total Bitcoin supply. 

Other potential constituents include Riot Platforms, Mara Holdings, Metaplanet, and KULR Technologies, all of which have ramped up their Bitcoin reserves. These firms align with Grayscale’s vision of providing investors access to high-performing companies benefiting from Bitcoin’s market potential. 

A Broader Push for ETF Approvals

The SEC has seen a surge in ETF applications in recent weeks, including filings by major firms such as BlackRock. While Grayscale’s Bitcoin Adapters ETF represents a shift from direct Bitcoin products to company-based exposure, the asset manager has also filed for a Litecoin ETF. 

The SEC’s decisions on these filings will shape the next phase of crypto investment options in the U.S. market. Grayscale’s move signals its commitment to innovation and adaptability amid regulatory changes.