Grayscale Holds Private Meeting With SEC To Discuss Transition To Bitcoin Spot ETF


Grayscale has given a personal presentation to the SEC stating that spot ETFs are no more risky than futures.

Last week, Grayscale, the world’s largest Bitcoin fund, reportedly met privately with the Securities and Exchange Commission (SEC). The company said that converting to a Bitcoin Spot ETF will unlock approximately $8 billion in value for its investors.

Why Should Grayscale Be Converted?

Grayscale asserted in a presentation shared with CNBC that a Bitcoin spot ETF would be “no riskier than a Bitcoin futures ETF.” Due to their large overlap in constituents and tightly connected prices, the organization argues that the same inputs drive both spot and futures markets.

Grayscale presently holds approximately 640,000 Bitcoin on behalf of over 850,000 accounts in the United States. That’s around 3.4 percent of Bitcoin’s total supply, currently worth $18.6 billion.

For example, Cathie Wood’s Ark Invest can use the fund to obtain price exposure to Bitcoin. However, the fund’s technicals differ from those of exchange-traded funds, causing it to track Bitcoin’s price less accurately.

Grayscale’s actual trust, GBTC, is currently trading at a 25% discount to its underlying Bitcoin holdings. However, the business claims that the discount will vanish when the stock is converted into an ETF, giving present investors enormous value.

Taking on the SEC

Grayscale’s transition fund effort has been long and tough. Unlike similar organizations in other countries, the SEC has been unwilling to approve a Bitcoin spot ETF due to concerns about market manipulation.

On the other hand, Grayscale refuses to give up on its aim and continues to press the SEC to approve its spot ETF conversion. It has already urged its investors to support its application by writing over 3000 letters to the SEC, threatening to sue them if they do not.

The commission has failed to treat two identical products, futures ETFs and spot ETFs, equally, according to CEO Michael Sonnenshein. As a result, if the commission rejects Grayscale‘s application, it might be charged with violating the Administrative Procedure Act.


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