Grayscale, a digital asset management, has launched a new attempt to obtain the US Securities and Exchange Commission to approve the BTC ETF.
The demand for Bitcoin exchange traded funds (ETFs) is increasing as the year 2022 approaches. Experts predict it will eventually make its way to the Wall Street exchanges.
According to a report, Grayscale prepared a letter to the commission emphasizing legal minutiae in order to strengthen its case. The asset manager wants to turn its $40 billion in Bitcoin into an ETF. Grayscale’s approach comes at a time when the Securities and Exchange Commission is debating the future of exchange traded funds. The verdict on Grayscale’s plea, on the other hand, may come as early as July.
According to reports, three such crypto-related ETFs are already in the queue for approval. Grayscale’s proactive strategy, on the other hand, will eventually force the SEC to make a timely decision.
In the letter, Grayscale stated that there is no reason to treat spot bitcoin products differently than bitcoin futures products when it comes to approval.
Grayscale’s CLO, Craig Salm, has voiced the concern that the commission is losing its ability to depend on the difference between ETF and spot ETF regulations.
The key reason for the rejection of spot crypto ETFs was “difficulty in tracking and manipulation in the market,” according to the commission. Because their trades are being watched by regulators, exchange funds holding crypto futures are already active in the market.
Meanwhile, SEC Chairman Gary Gensler has been a vocal critic of the cryptocurrency business. He emphasized that the digital asset market is uncontrolled, which raises worries about manipulation and fraud. Previously, the SEC took moves toward registering crypto platforms with the agency.