Digital asset supervisor Grayscale reported overwhelming assist in public feedback for its utility to launch a spot Bitcoin exchange-traded fund.
In a Monday letter to buyers, Grayscale stated that of the greater than 11,400 letters the United States Securities and Exchange Commission, or SEC, had obtained with regard to its proposed Bitcoin (BTC) funding automobile, “99.96 percent of those comment letters were supportive of Grayscale’s case” as of June 9. According to Grayscale, roughly 33% of the letters questioned the shortage of a spot BTC ETF within the U.S., given the SEC had already permitted funding autos linked to Bitcoin futures, as was the case for ProShares and Valkyrie.
“The SEC’s actions over the past eight months […] have signaled an increased recognition of and comfort with the maturity of the underlying Bitcoin market,” stated Grayscale CEO Michael Sonnenshein. “The approval of each and every Bitcoin-linked investment product strengthens our arguments about why the U.S. market deserves a spot Bitcoin ETF.”
— Grayscale (@Grayscale) June 27, 2022
The regulatory physique is at the moment reviewing Grayscale’s utility permitting the agency to transform shares of its Bitcoin Trust (GBTC) right into a physically-backed fund, which, if permitted, could be the primary spot BTC ETF providing within the United States. The utility is nearing the top of a 240-day assessment course of, which began in November 2021 and ends on July 6.
Though Grayscale’s marketing campaign to encourage public feedback with the SEC has been ongoing since February, many trade specialists have prompt the regulatory physique approving such an providing was unlikely. The SEC rejected related functions from NYDIG, and Global X as just lately as March, and One River Digital in May. SEC chair Gary Gensler has usually pivoted in interviews when questioned as to when the fee might approve a spot Bitcoin ETF, saying in February that he would give the matter “careful consideration.”
“[In my opinion] the chances of GBTC being allowed to convert to an ETF next week are 0.5%,” stated Bloomberg ETF analyst Eric Balchunas. “About the same odds the NY Jets have of winning the Super Bowl.”
Related: ProShares will launch ETF geared toward shorting Bitcoin following dip beneath $20K
It’s unclear what strikes Grayscale could make if the SEC denies its utility subsequent week. The agency stated it was “unequivocally committed” to changing its BTC belief to an ETF, hiring a former U.S. Solicitor General in June to work as a senior authorized strategist for its utility. In May, the digital asset supervisor launched a crypto-linked ETF on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra.