The United States Securities and Exchange Commission (SEC) has held a private meeting with Grayscale regarding the approval of a spot Bitcoin exchange-traded fund (ETF). According to reports, Grayscale argued that a spot Bitcoin ETF carried the same amount of risk as a futures ETF.
The SEC approved a Bitcoin futures ETF in October last year. However, the regulator has been reluctant to approve a spot Bitcoin ETF, stating that the prices of crypto assets are prone to manipulation.
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Grayscale wants a spot Bitcoin ETF
In a presentation done with CNBC, Grayscale said that a Bitcoin spot ETF was “no riskier than a Bitcoin futures ETF. According to the digital asset manager, the performance of both spot and futures ETFs was determined by the same factors.
Grayscale is the world’s largest digital asset manager. The company holds more than 640,000 BTC on behalf of more than 850,000 accounts in the US alone. The amount of BTC held by Grayscale equates to around 3.4% of Bitcoin’s entire supply.
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The Grayscale Bitcoin fund attracts a lot of institutional investors that want exposure to Bitcoin prices without holding the actual asset. Some of the companies that have invested in the fund include Ark Invest.
However, Grayscale’s Bitcoin fund operates in certain dynamics that differentiate it from the other funds in the market. The Grayscale GBTC is currently trading at a 25% discount. Grayscale has argued that the discount will vanish after the fund converts into an ETF. This move could unlock major benefits for the investors of this fund.
Grayscale vows to sue the SEC
Grayscale has an active application with the SEC for a spot Bitcoin ETF. However, like most Bitcoin ETF applications filed with the regulator, the approval of the conversion of Grayscale’s GBTC into an ETF has been delayed.
Grayscale has refused to stand down and let the SEC deny the application for a Bitcoin EFF. The company has pressured the commission, and at some point, it threatened to sue the Sec if its ETF application was denied.
Grayscale has also urged its investors to send more than 3000 letters to t SEC supporting the application for a spot Bitcoin ETF. Grayscale’s CEO Michael Sonnenshein, has also said that the commission failed to accept that a futures ETF was similar to a spot ETF. The company has said that the SEC will be violating the Administrative Procedure Act if it fails to approve its ETF application.
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