Grayscale is lobbying for the US SEC to approve choices on its spot Bitcoin exchange-traded fund (ETF), Reuters reported on Feb. 29.
Grayscale CEO Michael Sonnenshein stated:
“It’s important to the pursuits of GBTC and all spot Bitcoin [exchange-traded product] buyers to entry exchange-listed choices on GBTC and different spot Bitcoin ETPs.”
The SEC accepted Grayscale’s spot Bitcoin ETF (GBTC) in January. Not like a lot of the different newly accepted spot Bitcoin ETFs, GBTC was transformed to an ETF from an present fund.
Choices might improve regulation
In response to Sonnsenshein, the SEC’s rejection of choices on GBTC would unfairly discriminate in opposition to shareholders as a result of the regulator has accepted choices on Bitcoin futures ETFs.
He added that choices might additionally assist spot Bitcoin ETF funding extra broadly as they might present worth discovery, help market situation navigation, and assist hedging and revenue technology.
Moreover, choices would convey BTC throughout the regulatory perimeter, permitting extra market contributors, together with contract retailers and broker-dealers, to commerce the funds.
Grayscale’s letter was reportedly prompted by the SEC’s choice to open feedback on choices for its ETF on Feb. 23. The regulator’s discover additionally opened feedback on Bitwise’s equal ETF and different NYSE-listed trusts that maintain Bitcoin.
Beforehand, in January, the SEC opened feedback on choices for BlackRock’s Nasdaq-listed spot Bitcoin ETF and numerous Cboe-listed spot Bitcoin ETFs.
Grayscale is a key ETF participant
Grayscale’s communications with the SEC are vital as a result of its previous efforts have contributed to approvals. After the SEC dismissed Grayscale’s spot Bitcoin ETF software, the agency initiated a authorized case in opposition to the regulator and received a victory that compelled the SEC to re-address the matter.
SEC chair Gary Gensler cited that final result in his company’s approval of spot Bitcoin ETFs, noting that the authorized end result made approval the “most sustainable path ahead.”
The corporate and different asset managers have additionally utilized for spot Ethereum ETFs. Grayscale’s software just lately gained assist from Coinbase on Feb. 21.
Whereas Grayscale’s newest letter doesn’t compel the SEC to behave in any method, the corporate’s previous significance signifies that its remark might affect future outcomes.
