In the quest to bring a Bitcoin Exchange-Traded Fund (ETF) to the market, Grayscale has taken another significant step. The digital asset manager has sent a detailed letter to the U.S. Securities and Exchange Commission (SEC), outlining its plans and advocating for the approval of a Spot Bitcoin ETF. This move comes as Grayscale continues to push for regulatory acceptance in the crypto space.
A Legal Endeavor
The letter, prepared by Grayscale’s legal team in collaboration with partner law firms Davis Polk & Wardwell and Munger Tolles & Olsen, provides crucial information and arguments for the SEC’s consideration.
In a tweet, Grayscale announced the delivery of the letter and shared the importance of the contents within. The digital asset manager is actively engaging with the SEC in its pursuit of offering a Spot GBTC (Grayscale Bitcoin Trust).
Spot vs. Futures: A Key Argument
Within the letter, Grayscale’s legal team makes a compelling argument by highlighting the existence of Bitcoin Future Exchange-Traded Products (ETPs). These products are already traded and have coexisted with Spot Bitcoin ETF proposals.
The letter emphasizes that if there were valid reasons to differentiate between Spot Bitcoin ETPs and Bitcoin Futures ETPs, they would have already surfaced in the fifteen Commission orders that rejected Spot Bitcoin Rule 19b-4 filings. This argument underscores the need for regulatory clarity and consistency in the crypto space.
Time in Review
Grayscale’s letter also points out that its Spot Bitcoin Rule 19b-4 filing has been under SEC review for over three times longer than the time it was initially assigned. This extended review period raises questions about the regulatory process and the urgency of providing clarity to the crypto market.
A Call to Action
The letter concludes with a suggestion to the regulator: issue an order approving NYSE Arca’s Rule 19b-4 filing and authorize its executives to collaborate with Grayscale in listing the Trust’s shares on the market. This call to action aligns with Grayscale’s commitment to offering a Bitcoin ETF.
A Recent Legal Victory
Notably, Grayscale secured a legal victory on August 29 when the Court of Appeals approved its plan to convert its GBTC Trust into a Spot Bitcoin ETF. This approval came after a previous denial by the SEC.
“GBTC is ready to operate as an ETF upon regulatory approval, and Grayscale and its investors look forward to more information from the SEC,” stated the company.
Grayscale’s letter to the SEC reflects the ongoing efforts to bring cryptocurrency ETFs to the market and underscores the importance of regulatory clarity in this evolving landscape. As the crypto community eagerly awaits further developments, the journey toward a Bitcoin ETF continues.
