- Grayscale is willing to implement its plans to convert GBTC to an ETF, but the SEC has been unfriendly towards the Bitcoin ETF.
- There are skepticisms if Grayscale’s spot-based Bitcoin ETF would get approved or not, but the company seems to be confident.
- The company might include the law if the SEC does not shows a green light on this matter.
The US Securities And Commission (SEC) has been quite strict when it comes to Bitcoin ETFs. And there are skepticisms whether Grayscale’s spot-based Bitcoin ETF would get approved or not, but the company seems to be confident.
The Grayscale Bitcoin Trust (GBTC) always had plans to convert into an ETF. GBTC offers liquidity via the OTCQX market, and converting it into an ETF would uplist the shares from OTCQX to NYSE Arca.
According to the CEO Michael Sonnenshein, who highlighted his optimism during the Washington Post Live, historically, no ETFs concerning Bitcoin were allowed in the market. And just a few months ago, they approved the first Bitcoin futures product in the market.
And that historically, the SEC has highlighted that they had concerns over the underlying Bitcoin market. What he meant was that the SEC has really evolved in its thoughts.
The CEO thinks that the way the regulatory body perceives the crowned crypto asset has evolved, given that now the SEC has approved Bitcoin spot ETFs under the 33 Act. And he is optimistic that the next natural step would be to allow for a spot Bitcoin ETF.
Furthermore, Sonnenshein suggested that allowing to convert the product into an ETF would bring it closer to the regulatory perimeters of the SEC, and it would be a win-win.
Would the Regulatory Legend Show Mercy For Bitcoin ETFs?
Possibly, if the regulator does not approve the Bitcoin ETF, the company may take legal actions against the SEC.
According to him, If the SEC cannot look at two similar issues, the futures ETF and the spot ETF, with the same lens, then it is potentially grounds for an Administrative Procedure Act violation,
The US SEC has earlier shown scrutiny towards the entities inclined toward digital assets-based ETFs. Some on its list were Fidelity Investments, Skybridge Capital, GlobalX, and New York Digital Investments Group (NYDIG).
It is to look forward to when the Securities and Exchange Commission would open its doors of optimism for cryptocurrency-based Exchange-traded funds (ETFs).
Source: https://www.thecoinrepublic.com/2022/06/11/are-there-possibilities-for-grayscales-bitcoin-etf-to-get-approval/