The U.S. Securities and Exchange Commission (SEC) has requested public comment on Grayscale Investments' spot bitcoin ETF. According to Bloomberg Intelligence analyst Eric Balciunas, 95% support the launch of a financial instrument.
In October 2021, the founder and CEO of Digital Currency Group, the parent company of Grayscale Investments, Barry Silbert confirmed plans to transform the Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.
According to the analyst’s screenshot, once the futures ETF is approved, “there is no point in banning a physical-backed pure bitcoin ETP.” The author noted that the US is "already lagging behind other countries like Canada" in approving the spot option.
“We need to stay competitive […]. Bitcoin is currently a secure asset class that has never been hacked and has been generating excellent returns year after year.
On October 19, 2021, Grayscale filed an application to convert a trust based on digital gold into an exchange-traded fund based on the first cryptocurrency.
On December 17, the SEC delayed the decision until February 6, 2022.
Earlier, the regulator approved applications for the launch of ETFs based on bitcoin futures from VanEck and Valkyrie Investments, as well as ProShares. Grayscale Investments called the SEC's actions "arbitrary and illegal."
In December, the regulator rejected WisdomTree's application to launch a spot Bitcoin ETF. Previously, the Commission made a similar decision regarding a similar proposal from VanEck.
As a reminder, in February 2022, the SEC delayed a decision on Grayscale's application to study the firm's ability to curb fraudulent or manipulative practices in the spot market.