Digital asset manager Grayscale reported overwhelming support in public comments for its application to launch a Bitcoin spot exchange-traded fund (ETF).
In a letter sent to investors on Monday, Grayscale said that of the more than 11,400 letters the United States Securities and Exchange Commission, or SEC, had received regarding its proposed Bitcoin (BTC) investment vehicle, “99.96% of those comment letters supported Grayscale’s case” as of June 9. According to Grayscale, approximately 33% of the letters questioned the lack of a BTC spot ETF in the United States, given that the SEC had already approved investment vehicles linked to Bitcoin futures contracts, as was the case with ProShares and Valkyrie.
“SEC Actions in the Past Eight Months […] have signaled increased recognition and comfort with the maturity of the underlying Bitcoin market,” said Grayscale CEO Michael Sonnenshein. “The approval of any and all Bitcoin-linked investment products strengthens our arguments as to why the US market deserves a Bitcoin spot ETF.”
A message from @Sonnenshein for $GBTC investors, on everything we’ve done and everything we’re ready to do: https://t.co/j1FpuLCpKY pic.twitter.com/6vQKVT97V4
— Grayscale (@Grayscale) June 27, 2022
The regulator is currently reviewing Grayscale’s application allowing the firm to convert shares of its Bitcoin Trust (GBTC) into a physically backed fund, which, if approved, would be the first BTC spot ETF offering in the territory. American. The application is nearing the end of a 240-day review process, which began in November 2021 and ends on July 6.
Although Grayscale’s campaign to encourage public comment with the SEC has been underway since February, many industry insiders have suggested the regulator is unlikely to approve such an offer. The SEC rejected similar applications from NYDIG and Global X in March, and from One River Digital in May. SEC Chairman Gary Gensler has often taken a turn in interviews when asked when the commission might approve a spot Bitcoin ETF, saying in February that he would give the matter “meticulous consideration.”
“[En mi opinión] the odds of GBTC being allowed to convert to an ETF next week are 0.5%,” said Bloomberg ETF analyst Eric Balchunas. “About as likely as the NY Jets to win the Super Bowl.”
It’s unclear what moves Grayscale might make if the SEC denies his request next week. The firm said it was “unequivocally committed” to turning its BTC trust into an ETF, hiring a former US Attorney General in June to work as a senior legal strategist for its application. In May, the digital asset manager launched a cryptocurrency-linked ETF on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra.
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