Grayscale Reports 99% Of SEC Comment Letters Back A Spot Bitcoin ETF

Grayscale, a digital asset manager, reported overwhelming support in public comments for its application to launch a spot Bitcoin exchange-traded fund.

iexclusivenews reports that in a letter to investors on Monday, Grayscale claimed that as of June 9, “99.96% of those comment letters were supportive of Grayscale’s case”.

This online news outlet understands that out of the more than 11,400 letters the US Securities and Exchange Commission, or SEC, had received in relation to its proposed Bitcoin (BTC) investment vehicle.

A third of the letters, according to Grayscale. Questioned why there wasn’t a spot BTC ETF in the United States. Because the SEC had already authorized investment vehicles tied to Bitcoin futures, such as 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,” said 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.”

A message from @Sonnenshein for $GBTC investors, on everything we’ve done and everything we’re ready to do: https://t.co/j1FpuLCpKY pic.twitter.com/6vQKVT97V4

— Grayscale (@Grayscale) June 27, 2022

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If accepted, Grayscale’s application to convert shares of its Bitcoin Trust (GBTC) into a physically-backed fund would be the first spot BTC ETF offered in the United States.

What You Need To Know

The regulatory body is now assessing Grayscale’s application. The 240-day evaluation period for the application, which began in November 2021 and concludes on July 6, is about to come to a close.

Even though Grayscale has been urging people to submit comments to the SEC since February. Several business experts have said it’s doubtful the regulatory body will approve such an offering.

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Similar petitions from NYDIG, Global X, and One River Digital were turned down by the SEC in March and May, respectively.

When asked in interviews when the commission could authorize a spot Bitcoin ETF. SEC head Gary Gensler often changed his mind, declaring in February that he would give the topic “careful consideration.”

“[In my opinion] the chances of GBTC being allowed to convert to an ETF next week are 0.5%,” said Bloomberg ETF analyst Eric Balchunas.

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“About the same odds, the NY Jets have of winning the Super Bowl.”

Meanwhile, iexclusivenews Nigeria reports that if the SEC rejects Grayscale’s proposal next week, it’s unclear what steps it would take.

The company hired a former U.S. solicitor general to serve as a senior legal strategist for its application in June and said that it was “unequivocally dedicated” to transforming its BTC trust into an ETF.

A cryptocurrency-linked ETF was introduced by digital asset management in May on the London Stock Exchange, Borsa Italiana, and Deutsche Börse Xetra.