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Grayscale advocates for spot BTC ETF approvals on behalf of customers but wants its GBTC added to the mix



  • In an open letter, Grayscale has explained its rationale for why the SEC should approve all spot bitcoin ETF applications.
  • The asset manager petitioned the SEC to convert its GBTC to a spot Bitcoin ETF alongside seven other applications with new SSA proposals.
  • Grayscale also urges the SEC to exercise fairness and orderliness in its actions relating to spot BTC ETFs.

Grayscale asset management has submitted a comment letter to back its Grayscale Bitcoin Trust’s (GBTC) pending 19b-4 filing, adding to the list of the seven who have already submitted Spot BTC ETF filings to the US SEC for consideration.

Grayscale legal team’s letter to the SEC

Grayscale, which boasts up to $7 billion in assets under management, has written a comment piece to the US Securities and Exchange Commission (SEC). Through its legal team led byDavis Polk, the asset manager attempts to convince the financial regulator why approving all the spot BTC Exchange Traded Funds (ETF) applications would be the better decision.

Notably, Grayscale commentary to the SEC comes as the asset manager continues to wait for a response from the D.C. Circuit court. For anyone interested in the story, Grayscale has an ongoing lawsuit against the commission where the asset manager wants the court to instruct the SEC to convert its GBTC to a spot Bitcoin ETF.

The United States boasts of almost one million investors owning GBTC, spread out across the 50 states. According to Grayscale, such expansiveness means that converting the GBTC to a spot BTC ETF would translate to billions of dollars in value for the said investors, advertently benefitting the country’s revenue system. Citing an expert from the address:

When the SEC is ready to approve spot bitcoin ETF applications, there is simply no reason to keep GBTC investors from the spot bitcoin ETF they deserve. We will continue to advocate for this cause on behalf of our investors.

Grayscale sharing its logic with the commission comes as the industry continues to awe in the sudden interest among institutional finance in crypto. Specifically, the traditional players have concentrated their attention on spot Bitcoin ETF, suggesting continued growth of the Bitcoin spot market and the widespread adoption of cryptocurrencies. Needless to say, visionary crypto proponents in the US believe that US investors ought to have access to spot BTC ETFs.

Grayscale’s rationale for Spot BTC ETF approvals

In the address, Grayscale urges the SEC to approve the spot Bitcoin ETFs, saying the commission already has the capacity to do so. This argument borders on the fact that the SEC has already approved Bitcoin Futures ETFs, which are known to be competently linked to Bitcoin’s Spot market. Notably, the Commodities Futures Trading Commission (CFTC) regulates the CME BTC Futures market.

The Bitcoin futures market is equally of notable size and maintains memberships with the global network of exchanges that share market surveillance under the Intermarket Surveillance Group umbrella. Cognizant of this fact, Grayscale believes that this alone gives enough oversight and surveillance “to protect against fraud or manipulation in the underlying spot BTC market.”

Also, Grayscale urges the commission to address the BTC ETF filings with fairness and orderliness, eliminating any favoritism. This rationale comes as the asset manager encourages a user or customer-centric approach to the entire matter, such that the commission focus on what would benefit the users most, consistently and equitably giving feedback and guidance to the innocent customers.

The asset manager also underscores the need to ensure American investors are protected and empowered, open to access whichever BTC investment avenue they deem fit, including spot BTC ETF.