Grayscale lobbying for regulatory approval of options for spot Bitcoin ETFs

Grayscale is lobbying for the US SEC to approve alternatives on its space Bitcoin alternate-traded fund (ETF), Reuters reported on Feb. 29.

Grayscale CEO Michael Sonnenshein said:

“It is key to the interests of GBTC and all space Bitcoin [exchange-traded product] investors to entry alternate-listed alternatives on GBTC and varied space Bitcoin ETPs.”

The SEC licensed Grayscale’s space Bitcoin ETF (GBTC) in January. Unlike many of the quite just a few newly licensed space Bitcoin ETFs, GBTC was remodeled to an ETF from an existing fund.

Choices could perchance well well purple meat up law

Consistent with Sonnsenshein, the SEC’s rejection of alternatives on GBTC would unfairly discriminate against shareholders as a result of regulator has licensed alternatives on Bitcoin futures ETFs.

He added that alternatives could perchance well well also give a enhance to space Bitcoin ETF funding extra broadly as they would perchance well provide model discovery, reduction market situation navigation, and give a enhance to hedging and income generation.

Furthermore, alternatives would carry BTC all over the regulatory perimeter, allowing extra market contributors, including contract merchants and dealer-dealers, to commerce the funds.

Grayscale’s letter was reportedly precipitated by the SEC’s likelihood to start feedback on alternatives for its ETF on Feb. 23. The regulator’s perceive also opened feedback on Bitwise’s equal ETF and varied NYSE-listed trusts that retain Bitcoin.

Beforehand, in January, the SEC opened feedback on alternatives for BlackRock’s Nasdaq-listed space Bitcoin ETF and diversified Cboe-listed space Bitcoin ETFs.

Grayscale is a key ETF participant

Grayscale’s communications with the SEC are serious because of its previous efforts have contributed to approvals. After the SEC brushed apart Grayscale’s space Bitcoin ETF application, the firm initiated a apt case against the regulator and received a victory that compelled the SEC to re-address the matter.

SEC chair Gary Gensler cited that in his company’s approval of space Bitcoin ETFs, noting that the apt outcome made approval the “most sustainable route forward.”

The firm and varied asset managers have also applied for space Ethereum ETFs. Grayscale’s application no longer too long within the past won give a enhance to from Coinbase on Feb. 21.

Whereas Grayscale’s most traditional letter does no longer compel the SEC to behave in any admire, the firm’s previous significance map that its comment could perchance well well affect future outcomes.