Grayscale lobbying for regulatory approval of spot bitcoin ETF choices

Grayscale is lobbying the US SEC to approve choices on its spot bitcoin exchange-traded fund (ETF), Reuters reported on February 29.

Grayscale CEO Michael Sonnenshein stated:

“It’s critical to the pursuits of GBTC and all spot bitcoin (exchange-traded product) traders to have entry to exchange-listed choices on GBTC and different spot bitcoin ETPs.”

The SEC permitted Grayscale’s Spot Bitcoin ETF (GBTC) in January. Not like a lot of the different newly permitted spot bitcoin ETFs, GBTC was transformed into an ETF from an current fund.

Choices might enhance 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 permitted choices on bitcoin futures ETFs.

He added that choices might additionally help spot bitcoin ETF investing extra broadly, as they may present value discovery, assist market orientation and help hedging and earnings technology.

Moreover, choices would convey BTC into the regulatory circuit, permitting extra market members, together with contract merchants and broker-dealers, to commerce the funds.

Grayscale’s letter was reportedly prompted by the SEC’s determination to open choices feedback for its ETF on February 23. The regulator’s announcement additionally opened up feedback on Bitwise’s equal ETF and different NYSE-listed trusts that maintain bitcoin.

Earlier in January, the SEC opened choices feedback for BlackRock’s Nasdaq-listed spot bitcoin ETF and numerous Cboe-listed spot bitcoin ETFs.

Grayscale is a key ETF participant

Grayscale’s communication with the SEC is vital as a result of its previous efforts contributed to the approval. After the SEC rejected Grayscale’s spot software for a bitcoin ETF, the agency took authorized motion in opposition to the regulator and received a victory that prompted the SEC to revisit the matter.

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

The corporate and different asset managers have additionally utilized for spot Ethereum ETFs. The Grayscale app just lately acquired help from Coinbase on February twenty first.

Whereas Grayscale’s newest letter doesn’t compel the SEC to take any motion, the corporate’s previous prominence means its remark might affect future outcomes.