Grayscale launches campaign to encourage public comments on Bitcoin ETF application

Published at: Feb. 22, 2022

As the U.S. Securities and Exchange Commission is considering whether to approve or deny asset manager Grayscale’s application for a Bitcoin spot exchange-traded fund, the firm has called on American investors to submit comments to the regulator.

In a Tuesday Twitter thread, Grayscale CEO Michael Sonnenshein announced the launch of an advocacy campaign for U.S.-based investors to speak their minds to the SEC before any final decision is reached on the Bitcoin (BTC) investment vehicle. Since the NYSE Arca filed with the regulatory body on Oct. 19 to list shares of Grayscale’s Bitcoin ETF under the ticker GBTC, the commission has twice delayed its decision on Dec. 15 and Feb. 4.

“This campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,” said Sonnenshein.

Today @Grayscale announced the launch of a new public campaign to encourage American investors to submit comments on our application with the SEC to convert $GBTC to a Spot Bitcoin ETF.

— Sonnenshein (@Sonnenshein) February 22, 2022

According to Grayscale’s chief legal officer Craig Salm, the firm has already received more than 200 letters in hopes of the SEC allowing the firm to convert its Bitcoin Trust into a physically-backed fund. Salm said some of the common themes from the feedback included calling a crypto ETF “in the public’s best interest,” allowing the U.S. to stay competitive with innovative investment vehicles, and calling out the SEC’s “nonsensical” approach in approving ETFs linked to Bitcoin futures but not BTC spot ETFs.

The Feb. 4 deferment from the SEC opened the floor to “interested persons to provide comments on the proposed rule change” for Grayscale’s BTC spot ETF. The regulatory body has the ability to extend the deliberation window up to 240 days from when the proposed rule change was published in the Federal Register on Nov. 8, meaning the SEC should reach a decision before July 6, 2022.

To date, the SEC has not approved any investment vehicle with direct exposure to crypto. Grayscale filed an application to restructure its Bitcoin Trust into an ETF in October shortly after the SEC approved ProShares’ Bitcoin Strategy ETF for listing on the New York Stock Exchange and shares of crypto-asset manager Valkyrie’s Bitcoin ETF fund on the Nasdaq Stock Market.

Related: Here’s why the SEC keeps rejecting spot Bitcoin ETF applications

If approved by the SEC, Grayscale would have the first publicly listed Bitcoin spot ETF available in the United States. This year, the regulator has already rejected applications for Fidelity’s Wise Origin Bitcoin Trust and First Trust SkyBridge Bitcoin ETF Trust, but is expected to reach a decision on NYDIG’s spot Bitcoin ETF and ​​asset manager Stone Ridge Holdings Group’s BTC ETF in March.

Tags
Etf
Sec
Business
Cryptocurrencies
Investments
Grayscale
Related Posts
SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF
United States Securities and Exchange Commission Chair Gary Gensler and ProShares head of investment strategy Simeon Hyman discussed the launch of the first Bitcoin-linked exchange-traded fund (ETF) with CNBC on Tuesday. ProShares Bitcoin Strategy ETF, also known as BITO, is based on CME Bitcoin (BTC) futures contracts. CNBC commentator Bob Pisani shared concerns from some investors that BTC futures could deviate from the BTC spot price. “The futures market is a better place for price discovery,” said Hyman. “The CME futures market trades more volume than the largest U.S. crypto exchange. We launched a similar mutual fund on 7/28, and …
Adoption / Oct. 19, 2021
Bitwise applies for 'actual' Bitcoin ETF with NYSE Arca
After almost two years, Bitwise Asset Management has once again applied with the United States Securities and Exchange Commission to create a Bitcoin exchange-traded fund (ETF). In a Thursday Twitter announcement from Bitwise chief investment officer Matt Hougan, the investment firm will be pursuing a Bitcoin (BTC) ETF with NYSE Arca that holds “actual BTC,” and not derivatives or other indirect exposure to cryptocurrencies. According to Hougan, the Bitwise team has spent more than two years analyzing the firm’s ability to “surveil and enforce” any attempts at manipulation and concluded that the Chicago Mercantile Exchange, or CME, is a “regulated …
Etf / Oct. 14, 2021
Investor Claims There's No Way to Cash Out From Grayscale's Bitcoin Trust
Qiao Wang — Investor, analyst and head of product at crypto market data firm Messari — raised major criticism about the way in which the Grayscale Bitcoin Trust, or GBTC, is set up. In a June 11 tweet, Wang cites Grayscale’s official website, according to which “Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time.” He suggested that the absence of a redemption mechanism can result in GBTC trading at a discount compared to the net asset value, or NAV, of the fund’s assets. “You are just donating your money to …
Etf / June 12, 2020
Fidelity seeks approval for 2 more crypto-metaverse ETFs
Fidelity Investments appeared undeterred by the U.S. Securities and Exchange Commission's, or SEC's, rejection of its Wise Origin Bitcoin Trust spot ETF on Thursday. Following the setback, the company filed two more prospectuses involving crypto-metaverse ETFs for regulatory approval. The proposals are titled are the Fidelity Crypto Industry and Digital Payments ETF and the Fidelity Metaverse ETF respectively. In rejecting the Wise Origin Bitcoin ETF, the SEC cited the exchange listing the ETF, the Cboe BZX, does not have a proper "surveillance-sharing agreement with markets trading" to prevent fraud and protect investor interests. However, neither of the two new ETF …
Adoption / Jan. 28, 2022
Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF
Digital asset manager Grayscale reported overwhelming support in public comments for its application to launch a spot Bitcoin exchange-traded fund. In a Monday letter to investors, Grayscale said that of the more than 11,400 letters the United States Securities and Exchange Commission, or SEC, had received in regards to its proposed Bitcoin (BTC) investment vehicle, “99.96 percent of those comment letters were supportive of Grayscale’s case” as of June 9. According to Grayscale, roughly 33% of the letters questioned the lack of a spot BTC ETF in the U.S., given the SEC had already approved investment vehicles linked to Bitcoin …
Etf / June 27, 2022