On Tuesday, September 5, the world’s largest asset supervisor Grayscale submitted a letter to the U.S. Securities and Exchange Commission (SEC) requesting their cooperation on the way in which ahead to changing its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF.
Grayscale mentioned that the SEC has no authorized motive left to block this conversion, after the latest court ruling. In its latest letter on Tuesday, Grayscale famous:
“Now that the Court of Appeals has spoken, there is no available rationale that would distinguish a Bitcoin futures ETP from a spot Bitcoin ETP under the legal analysis previously adopted by the Commission in rejecting spot Bitcoin ETPs.”
Besides, Grayscale expressed its perception that the SEC ought to decide that there are “no valid reasons” for treating GBTC in a different way from Bitcoin futures ETFs, which have acquired prior approval from the Commission.
Notably, on August 29, a U.S. Appeals Court issued a ruling towards the SEC’s rejection of Grayscale’s request to remodel GBTC into a standard Bitcoin ETF.
Grayscale – US SEC Has No Other Grounds of Rejection
Grayscale emphasised that if there have been any further grounds for denying the conversion, other than the Exchange Act’s mandate to forestall fraudulent and manipulative actions, these causes would have already been evident.
“We are confident that it would have surfaced by now in one of the fifteen Commission orders that rejected spot Bitcoin filings even after Bitcoin futures ETPs began trading,” the asset supervisor wrote.
Grayscale additionally identified that its fund conversion request has been awaiting approval for practically 3 times the length outlined within the SEC’s laws. Joseph A. Hall, the creator of Grayscale’s earlier letter to the SEC in July, which urged the approval of all pending ETF purposes concurrently, concluded the newest letter by stating:
“We believe the Trust’s nearly one million investors deserve a level playing field as quickly as possible.”
Since the August 29 courtroom ruling, the GBTC low cost, which signifies how a lot an ETF is buying and selling above or beneath its web asset worth, has decreased to 19.9%. During the bear market that adopted the FTX collapse in December 2022, GBTC’s low cost was approaching unfavourable 50%.
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