Grayscale appeals for community support with SEC spot Bitcoin ETF application

2022-2-23 14:30

Grayscale is calling for help as it attempts to get SEC approval for a spot Bitcoin ETF.

Last October, the New York-based asset managers announced it had filed to convert its existing Grayscale Bitcoin Trust (GBTC) to a spot ETF. This filing came hot off the heels of the SEC’s approval of the ProShares Bitcoin Futures ETF.

Commenting on this, the Global Head of ETFs at Grayscale, Dave LaValle, reasoned that if the SEC is at ease overseeing a BTC futures product, they should also be comfortable with an equivalent spot-based product.

“At Grayscale, we believe that if regulators are comfortable with ETFs that hold futures of a given asset, they should also be comfortable with ETFs that offer exposure to the spot price of that same asset.”

The difference between spot and futures comes down to the underlying asset. Real Bitcoin backs a spot-based ETF. In contrast, the futures-based ETF is backed by a derivative in Bitcoin futures contracts.

The price of Bitcoin futures contracts can differ from the current market price based on investors’ sentiment. This carries the risk of inaccurate pricing, whereas no such risk exists with a spot-based product.

As such, it’s arguable that a spot-based ETF is better for investors and, if approved, would provide a strong endorsement of digital assets.

What is the Grayscale Bitcoin Trust?

GBTC is a financial vehicle offering accredited investors a way to invest in Bitcoin via the stock market. Investors buy shares in the trust; in turn, the trust buys Bitcoin. As the BTC price rises and falls, so too does the price of GBTC shares.

GBTC has approximately $24.3 billion in assets under management and 692.4 million shares outstanding.

Its advantages include exposure to BTC without holding the asset, which is beneficial to those unwilling to deal with custody and safekeeping. As a regulated product, investors also have regulatory protection.

However, the downside to investing in GBTC is the high premium attached. The trust carries a 2% fee, and as mentioned by MorningStar, it sometimes fails to track the price of Bitcoin accurately. The upshot to this is investors may be better off investing in BTC directly.

“Both of these factors have led to large differences between the returns of the trust and the returns of Bitcoin itself.”

Participation matters

U.S ETF approval has become a war between providers and the SEC. Many firms have tried and failed to get permission since 2013.

Although the SEC greenlighted the ProShares Bitcoin Futures ETF in October 2021, a spot-based ETF has yet to be sanctioned in the U.S.

There could be many reasons for this. Firstly, it’s still unclear whether the current U.S administration is for or against digital assets. Also, there remain doubts over Bitcoin’s status as a bona fide asset.

In any case, as part of Grayscale’s filing process, the SEC opened a 240-day public consultation period on Tuesday. During this time, people can submit their comments on the matter.

Speaking to Bloomberg, Grayscale CEO Michael Sonnenshein said the SEC wants to hear from investors, and in an attempt to rally support, Sonnenshein said participation in public consultation matters.

Grayscale has set up a dedicated webpage detailing their campaign. It contains a link to contact the EC directly.

The post Grayscale appeals for community support with SEC spot Bitcoin ETF application appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Cryptospot Token (SPOT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 SPOT

spot etf sec grayscale bitcoin appeals application

spot etf → Результатов: 126


Argentina Plans to Launch Bitcoin Futures While US SEC Postpones Valkyrie Spot Bitcoin ETF Deadline to Early January

Valkyrie Fund CIO says Bitcoin Spot ETF is not coming until the middle of next year as the regulator tries to “get their heads around what exactly is going on with these exchanges.” The post Argentina Plans to Launch Bitcoin Futures While US SEC Postpones Valkyrie Spot Bitcoin ETF Deadline to Early January first appeared on BitcoinExchangeGuide.

2021-11-3 20:12


First US Bitcoin ETF is Reaching its Limit After Becoming the Fastest Fund to Amass $1 Billion in Assets

This issue can potentially set the path to a Bitcoin spot ETF approval, for which Grayscale has already filed. But for now, GBTC shares are trading at a steep 19% discount. The post First US Bitcoin ETF is Reaching its Limit After Becoming the Fastest Fund to Amass Billion in Assets first appeared on BitcoinExchangeGuide.

2021-10-22 15:53


Фото:

Grayscale Investments Files with SEC to Convert GBTC Trust Into Spot Bitcoin ETF

As the first US SEC-approved Bitcoin futures ETF goes live, Grayscale Investments is eyeing to launch the US’s first spot BTC ETF. Grayscale Investments Files with the SEC for Spot Bitcoin ETF The world’s leading digital currency asset management firm Grayscale Investments today announced that NYSE Arca had filed with the US Securities and ExchangeRead More

2021-10-20 17:00