TLDR
Grayscale filed a confidential S-1 IPO draft with the SEC under the JOBS Act.
The firm seeks to go public amid a broader surge in crypto IPO activity.
The move follows legal friction with the SEC over ETF conversion delays.
The filing coincides with Bitcoin hitting a new high and U.S. Crypto Week
Grayscale has filed a confidential draft for a U.S. IPO with the SEC as digital asset regulation takes center stage.
Grayscale Begins IPO Process with SEC Filing
Grayscale Investments has submitted a confidential draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission. \\
The submission was made under the JOBS Act, allowing early IPO details to remain undisclosed during initial review.
In its public statement, Grayscale said the offering would proceed following the SEC’s review and subject to market conditions. The firm did not provide further information regarding the number of shares or price range. This move follows Grayscale’s growing presence in the crypto ETF space.
Grayscale Regulatory Dispute Over ETF Conversion Persists
The IPO filing comes shortly after a legal back-and-forth between Grayscale and the SEC. Grayscale has been seeking approval to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund. The firm’s legal team argues that the SEC missed its 240-day deadline to approve or deny the application.
A letter from Grayscale’s counsel noted, “The law does not authorize the Commission to impose a stay. It can only approve or disapprove.”
The firm added that a petition may be filed to move the process forward if the SEC remains unresponsive. Earlier in the year, the SEC approved Grayscale’s conversion of its Bitcoin Trust into a spot ETF, followed by similar steps for its Ethereum Trust.
IPO Rush Resumes as Circle and Others Join In
Grayscale’s filing comes amid a broader resurgence in U.S. IPO activity, especially within the digital asset sector. According to Renaissance Capital, IPOs across all industries have raised $15.7 billion this year, which is already up over 100% from 2022 levels.
The trend has attracted major crypto companies to public markets. Circle, the firm behind the USDC stablecoin, raised over $1 billion in gross proceeds during its IPO in June.
Other crypto firms preparing for IPOs include Gemini, OKX, Bullish, and FalconX. The trend reflects renewed interest in regulated exposure to digital assets.
Crypto Week Starts as Bitcoin Hits New High
The timing of Grayscale’s IPO filing aligns with the beginning of Crypto Week in the U.S. House of Representatives. Lawmakers are expected to debate several bills between July 14 and 18, covering topics like stablecoins and crypto market structure. These legislative moves could influence how asset managers operate within the U.S.
As these discussions begin, Bitcoin has rallied past $123,000, reaching an all-time high and drawing new attention from investors and regulators. Ethereum and other large-cap cryptocurrencies have also posted gains.
Grayscale’s step toward a public offering reflects growing optimism in the crypto space. The firm’s move comes during a week of major legislative activity and a market rally, both of which could influence the pace of crypto adoption in the U.S.
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