Crypto asset manager Grayscale submitted an updated Bitcoin ETF application the same day CEO Barry Silbert unexpectedly resigned from its board of directors.

Silbert's departure spurred speculation his ties to an SEC investigation into parent company Digital Currency Group prompted the move to improve approval odds. Some argue his exit was likely an agreement with regulators amid Grayscale’s years-long attempt to convert its Bitcoin Trust into an SEC-sanctioned spot ETF vehicle.

Beyond the personnel shakeup, Grayscale also finally acquiesced to demands for a cash-only creation model — bringing its filing in line with SEC preferences. The concession may prove pivotal given the contentious debate over in-kind vs cash transactions for directly handling Bitcoin in an ETF.

While in-kind is standard for most commodity funds, the SEC maintains tighter restrictions on broker-dealers custodying crypto — likely seeking greater transparency on Bitcoin flows via cash-based share creation/redemption.