Grayscale Urges SEC Approval for Bitcoin ETF to Protect Investors
Grayscale, a prominent cryptocurrency investment firm, is urging the US Securities and Exchange Commission (SEC) to approve its application for a spot Bitcoin exchange-traded fund (ETF). The company’s lawyers have expressed concern that any further delay in the approval process could result in harm to investors. In a letter to the SEC, the lawyers emphasized that the review of Grayscale’s application has already exceeded the permitted duration under securities law.
Grayscale argues that there is no valid reason for the SEC to differentiate spot Bitcoin ETFs from futures-based Bitcoin ETFs. They highlight the recent court ruling which found similarities between Grayscale’s proposed product and existing futures Bitcoin ETFs, indicating that both have the same surveillance-sharing agreement with the Chicago Mercantile Exchange. Grayscale is urging the SEC to expedite its decision-making process and greenlight the application.
“But now that the Court of Appeals has spoken, there is no available rationale that would distinguish a bitcoin futures ETP from a spot bitcoin ETP under the legal analysis previously adopted by the Commission in rejecting spot bitcoin ETPs.”
Grayscale to the SEC
Many investors express a preference for spot Bitcoin ETFs, which offer a more straightforward and efficient investment option. Grayscale’s lawyers argue that investors should not be compelled to choose less efficient and complicated product structures simply because those are the only types approved by the Commission so far. Continuous delay by the SEC is viewed as detrimental to investors.
Grayscale faces increasing competition from other applicants who have also filed for spot Bitcoin ETFs. The recent court ruling has further supported Grayscale’s position that the SEC should not impose additional requirements on spot Bitcoin ETFs. Despite the postponement of the SEC’s decision on several spot Bitcoin ETF filings, the Commission is required to review Grayscale’s filing again and may choose to appeal the ruling.
Hot Take:
The approval of a spot Bitcoin ETF by the SEC would provide investors with an accessible and secure way to invest in digital assets. By treating spot Bitcoin ETFs similarly to futures-based Bitcoin ETFs, the SEC can ensure equal opportunities for investors and stimulate growth in the cryptocurrency market.
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