Grayscale lobbying for regulatory approval of choices for spot Bitcoin ETFs

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 authorised Grayscale’s spot Bitcoin ETF (GBTC) in January. In contrast to a lot of the different newly authorised spot Bitcoin ETFs, GBTC was transformed to an ETF from an current fund.

Choices may improve regulation

In keeping with Sonnsenshein, the SEC’s rejection of choices on GBTC would unfairly discriminate towards shareholders as a result of the regulator has authorised choices on Bitcoin futures ETFs.

He added that choices may additionally assist spot Bitcoin ETF funding extra broadly as they may present value discovery, help market situation navigation, and assist hedging and revenue era.

Moreover, choices would deliver BTC throughout the regulatory perimeter, permitting extra market individuals, together with contract retailers and broker-dealers, to commerce the funds.

Grayscale’s letter was reportedly prompted by the SEC’s determination 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 varied 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 utility, the agency initiated a authorized case towards the regulator and received a victory that compelled the SEC to re-address the matter.

SEC chair Gary Gensler cited that end result in his company’s approval of spot Bitcoin ETFs, noting that the authorized consequence made approval the “most sustainable path ahead.”

The corporate and different asset managers have additionally utilized for spot Ethereum ETFs. Grayscale’s utility not too long ago gained assist from Coinbase on Feb. 21.

Whereas Grayscale’s newest letter doesn’t compel the SEC to behave in any approach, the corporate’s previous significance signifies that its remark may affect future outcomes.