Grayscale Urges SEC to Approve GBTC Conversion to Bitcoin ETF
Grayscale, the world’s largest asset manager, has submitted a letter to the U.S. Securities and Exchange Commission (SEC) requesting cooperation in converting its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. Grayscale argues that the recent court ruling removes any legal basis for the SEC to block this conversion. According to the asset manager, there are no valid reasons to treat GBTC differently from Bitcoin futures ETFs that have already received approval from the Commission. Grayscale believes that if there were any additional grounds for denial, they would have already been evident in previous Commission orders. The fund conversion request has been awaiting approval for a duration that exceeds the SEC’s regulations. Grayscale emphasizes the need for a level playing field for its nearly one million investors. Since the court ruling, the GBTC discount has decreased to 19.9%, indicating improved market conditions compared to the bear market in December 2022.
Hot Take: Grayscale Challenges SEC to Treat GBTC Equally
Grayscale’s letter to the SEC highlights the need for equal treatment of GBTC and Bitcoin futures ETFs. By urging the approval of the GBTC conversion, Grayscale aims to provide its investors with a fair and accessible investment opportunity. The recent court ruling supports Grayscale’s argument that there are no legal grounds for the SEC to reject the conversion. The decreasing GBTC discount further strengthens the case for approval, as it indicates improved market conditions. It remains to be seen how the SEC will respond to Grayscale’s request and whether it will grant the conversion to a spot Bitcoin ETF. This development could have significant implications for the cryptocurrency industry and pave the way for further institutional adoption of Bitcoin and other digital assets.
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