Grayscale, a leading crypto fund manager, is urging the SEC to simultaneously approve all proposed spot Bitcoin exchange-traded funds (ETFs). Their Chief Legal Officer, Craig Salm, emphasizes the importance of fair decision-making and avoiding favoritism among the ETF filings. Grayscale’s letter addresses eight spot Bitcoin ETF filings, including their own, and highlights the SEC’s potential to approve such ETFs based on previous approvals of Bitcoin futures ETFs. The move aligns with ongoing efforts to enhance transparency and investor accessibility in the rapidly expanding crypto ecosystem.
Grayscale Seeking Fairness in the Approval Process
Their letter to the SEC stressed the importance of fairness and consistency in the approval process for spot Bitcoin ETFs. Drawing parallels with the SEC’s approval of Bitcoin futures ETFs, the letter argued that Bitcoin’s spot and futures markets are closely linked, evident from third-party studies showing a 99% correlation. Consequently, surveillance of the CME Bitcoin futures market, regulated by the Commodity Futures Trading Commission (CFTC), should suffice in protecting against potential fraud or manipulation in the underlying spot Bitcoin market.
While the leading Bitcoin fund manager acknowledged the recent surveillance sharing agreements (SSAs) between Coinbase and spot ETF providers as a positive step in enhancing oversight, they believe SSAs are not the sole solution for obtaining approval for spot Bitcoin ETFs. Nevertheless, Grayscale remains committed to supporting any efforts that enable investors to access the crypto ecosystem and advocates for the SEC’s consistent and equitable guidance to issuers.
A Call for Simultaneous Approvals
As Grayscale awaits a decision from the DC Circuit regarding their lawsuit to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, they emphasize the need for fair and orderly actions from the SEC. To protect American investors and provide them with access to their choice of Bitcoin investment vehicles, Grayscale proposes simultaneous approvals for all spot Bitcoin ETF applications. Such an approach would prevent any undue advantage for specific proposals, ensuring a level playing field for all investors and issuers.
Grayscale’s call for simultaneous approval of spot Bitcoin ETFs demonstrates their commitment to fair treatment for investors and the crypto market. As the SEC regulates crypto-related products, clear guidelines are crucial. Spot Bitcoin ETF approvals are a significant milestone, offering accessible and regulated avenues for American investors. Grayscale’s unwavering advocacy emphasizes transparency and investor protection in the evolving crypto landscape.