Crypto investment manager Grayscale has called on the U.S. Securities and Exchange Commission (SEC) to treat all spot Bitcoin (BTC) exchange-traded fund (ETF) applications equally. In a 6-page letter submitted to the SEC, the United States-based company emphasized that if any spot Bitcoin ETFs are approved, all proposals should be approved simultaneously to avoid unfair advantages.
The SEC should approve spot #bitcoin ETFs to trade in the US.
What’s more, their previous approval of bitcoin futures ETFs shows that they are already in a position to do so.
Read more about the latest from our legal team: https://t.co/UC8ksqNcwy $GBTC $BTC
— Grayscale (@Grayscale) July 27, 2023
The company argued that granting approval to only a select few spot Bitcoin ETFs, such as Ark 21 Shares, Invesco Galaxy, iShares (BlackRock), Valkyrie, VanEck, WisdomTree, and Wise Origin (Fidelity), would create an unfair and prejudicial first-mover advantage. It stated that such a decision would be a serious departure from the SEC’s existing application of relevant statutory standards.
Grayscale Advocates Equal Treatment for Spot Bitcoin ETFs
Highlighting the need for investor protection and fairness, Grayscale’s Chief Legal Officer, Craig Salm, stressed that the SEC should not favor some ETF issuers over others. He believes that all spot Bitcoin ETF applications, including his company’s own, should be approved simultaneously to ensure equal opportunities for investors and issuers.
As maintained by Craig Salm,
“As a disclosure-based regulator, the SEC should not pick winners and losers; instead, the SEC should continue to provide issuers with feedback or guidance consistently and equitably.”
Moreover, the company questioned the sufficiency of the surveillance-sharing agreements (SSAs) that some ETF applicants entered into with crypto exchange Coinbase. According to the investment management firm, these agreements might not meet the SEC’s requirements, as Coinbase lacks compulsory investigative authority and comprehensive market regulator oversight.
Grayscale’s Legal Battle for GBTC’s Conversion
Grayscale’s push for spot Bitcoin ETF approval comes after a prolonged legal battle with the SEC over its own ETF application. While the SEC has previously approved futures-based Bitcoin ETFs, it has denied Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) into an ETF.
Meanwhile, the approval of such ETFs is considered a significant milestone for mainstream Bitcoin (BTC) adoption and the recognition of cryptocurrencies as an asset class.
As the battle for spot bitcoin exchange-traded fund (ETF) approval continues, all eyes are on the SEC’s decisions, and Grayscale claims to remain dedicated to working with regulators to achieve a positive outcome for investors and issuers alike.