Grayscale Pushes SEC to Convert its GBTC to Spot Bitcoin ETF

On Tuesday, September 5, the world’s largest asset supervisor Grayscale submitted a letter to the U.S. Securities and Trade Fee (SEC) requesting their cooperation on the way in which ahead to changing its Grayscale Bitcoin Belief (GBTC) to a spot Bitcoin ETF.

Grayscale mentioned that the SEC has no authorized motive left to dam this conversion, after the latest court ruling. In its latest letter on Tuesday, Grayscale famous:

“Now that the Court docket of Appeals has spoken, there is no such thing as a accessible rationale that might distinguish a Bitcoin futures ETP from a spot Bitcoin ETP underneath the authorized evaluation beforehand adopted by the Fee in rejecting spot Bitcoin ETPs.”

In addition to, Grayscale expressed its perception that the SEC ought to decide that there are “no legitimate causes” for treating GBTC in another way from Bitcoin futures ETFs, which have obtained prior approval from the Fee.

Notably, on August 29, a U.S. Appeals Court docket issued a ruling towards the SEC’s rejection of Grayscale’s request to remodel GBTC into a standard Bitcoin ETF.

Grayscale – US SEC Has No Different Grounds of Rejection

Grayscale emphasised that if there have been any further grounds for denying the conversion, apart from the Trade Act’s mandate to stop fraudulent and manipulative actions, these causes would have already been evident.

“We’re assured that it might have surfaced by now in one of many fifteen Fee orders that rejected spot Bitcoin filings even after Bitcoin futures ETPs started buying and selling,” the asset supervisor wrote.

Grayscale additionally identified that its fund conversion request has been awaiting approval for practically thrice the length outlined within the SEC’s laws. Joseph A. Corridor, the creator of Grayscale’s earlier letter to the SEC in July, which urged the approval of all pending ETF functions concurrently, concluded the newest letter by stating:

“We consider the Belief’s practically a million traders deserve a degree enjoying discipline as rapidly as attainable.”

For the reason that August 29 courtroom ruling, the GBTC low cost, which signifies how a lot an ETF is buying and selling above or under its web asset worth, has decreased to 19.9%. In the course of the bear market that adopted the FTX collapse in December 2022, GBTC’s low cost was approaching detrimental 50%.