Getting Bitcoin Public Through the Front Door: Grayscale’s Secret Rendezvous

The SEC about to give in? – For 7 months, the Securities and Exchange Commission (SEC) rejects, one by one, all listing requests for exchange-traded funds (ETFs) that relate to Bitcoin (BTC). Last March, the Grayscale asset managertired of these refusals, even declared that he would not hesitate to embark on a legal battle against the SEC if his Bitcoin spot ETF were to be refused.

Would Grayscale’s threats have had the desired effect?

On May 11, 2022, Grayscale announced, through CoinDesk, the subsidiary of Digital Currency Group, that it had serviced with the SEC about the Grayscale Bitcoin Trust (GBTC) and more specifically the spot Bitcoin ETF. Indeed, since October 2021, Grayscale awaits SEC clearance to convert its GBTC into spot Bitcoin ETF. In addition, the meeting took place at behind closed doors.

“After a productive meeting, we remain encouraged by our continued engagement with the SEC. At Grayscale, we intend to maintain an open dialogue with regulators and policymakers in the lead up to July 6th. »

Announcement of Grayscale

It was on this date that the SEC declared that it would make its decision regarding the admission or rejection of Grayscale’s Bitcoin Spot ETF.

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The Case for the Bitcoin Spot ETF by Grayscale

First, one of the arguments put forward by Grayscale relates to the investor protection. Indeed, the asset management company told the SEC that the conversion of its flagship product into a spot ETF “would better protect investors and the public interest, by allowing the product to better track net asset value, while giving investors the freedom to invest in Bitcoin in a safe and secure manner”.

Next, Grayscale explained that an exchange-traded fund “would allow better tracking of net asset value and unlock approximately $8 billion for investors”.

Until July 6, 2022, Grayscale has therefore announced that other private meetings should stand with the SEC.

Furthermore, last April, the CEO of Grayscale Investments, Michael Sonnensheinhinted that the company is planning to launch its Bitcoin derivatives on European territory.

The SEC will still take time before authorizing the Grayscale ETF! Want Bitcoin? Register now on BinanceTHE absolute benchmark in the crypto sector (affiliate link)

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