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Grayscale Lawyers Demand SEC Meeting for Bitcoin ETF Approval

2 mins
Updated by Kyle Baird
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In Brief

  • Grayscale urges the SEC to expedite the approval for converting its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
  • The firm contends that there's no reason to treat its Trust differently from ETPs investing in Bitcoin futures contracts.
  • Grayscale further argues that there's no rationale to distinguish a Bitcoin futures ETP from a spot Bitcoin ETP.
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Grayscale Investment lawyers have written a letter to the United States Securities and Exchange Commission (SEC) seeking a meeting to expedite the approval process for a Bitcoin exchange-traded fund (ETF).

“We would appreciate the opportunity to meet with the staff of the Securities and Exchange Commission as soon as practical,” the letter stated.

Grayscale Sees No Remaining SEC Objections for Bitcoin ETF Approval

According to a recent letter, Grayscale demands the US Securities and Exchange Commission to halt any ongoing legal proceedings concerning the conversion of its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.

This follows the US Court of Appeals’ approval of the firm’s request for the SEC to reevaluate its Bitcoin ETF application, which the SEC had initially denied. The court concurred with Grayscale’s contention that the absence of a surveillance-sharing agreement did not constitute a valid argument.

Grayscale further substantiated this by drawing parallels with Bitcoin Futures products, which also depend on Bitcoin’s underlying price.

Bitcoin Price Chart 1 Month. Source: BeInCrypto
Bitcoin Price Chart 1 Month. Source: BeInCrypto

The letter stated,

“We believe the Commission should conclude that there are no grounds for treating the Trust differently from ETPs that invest in bitcoin futures contracts traded on the Chicago Mercantile Exchange (“CME”) whose Rule 19b-4 filings the Commission has previously approved.”

To learn more about where to buy Bitcoin, read BeInCrypto’s guide: 4 Best Crypto Brokers for Buying and Selling Bitcoin in 2023

Confidence in Approval

Grayscale believes there are no additional arguments against a Bitcoin ETF product, and any further objections would have already surfaced.

The letter continued:

“We are confident that it would have surfaced by now in one of the fifteen Commission orders that rejected spot bitcoin Rule 19b-4 filings.”

Grayscale suggests that the SEC should “move expeditiously” to approve the conversion of the GBTC into a Bitcoin ETF.

It further argues there are no more rational avenues available to reject the product. “There is no available rationale that would distinguish a bitcoin futures ETP from a spot bitcoin ETP under the legal analysis,” the letter further noted.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in...
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