In a bid to pave the best way for the much-anticipated period of spot Bitcoin Alternate-Traded Funds (ETFs), Grayscale’s Chief Authorized Officer, Craig Salm, has made a compelling case for the Securities and Alternate Fee (SEC) to approve all spot ETF purposes concurrently. Grayscale’s authorized group has submitted a letter relating to the current eight spot ETF filings, arguing the SEC shouldn’t choose “winners and losers”.
Grayscale Calls For Bitcoin ETF Approval
Highlighting the interconnectedness between Bitcoin’s spot and futures markets, Salm argues, “The SEC is already ready to approve spot BTC ETFs based mostly on its earlier approval of Bitcoin futures ETFs. BTC’s spot and futures markets are inextricably linked (as evidenced by third-party research exhibiting 99% correlation).” This means that surveillance of the regulated CME Bitcoin futures market might successfully safeguard in opposition to potential fraud or manipulation within the spot market.
Grayscale additionally emphasizes its dedication to supporting measures that allow traders to entry the crypto ecosystem whereas fostering oversight in centralized crypto markets. Though an settlement with a spot Bitcoin market (Surveillance Sharing Settlement, SSA) is just not a “silver bullet” for securing spot ETF approval, accor Grayscale stays steadfast in its assist for regulatory compliance.
“Though we don’t consider the introduction of an SSA with a spot Bitcoin market is or ought to be the ‘silver bullet’ to getting spot Bitcoin ETFs accepted within the US, as a company with a deep historical past of embracing US monetary guidelines and rules […] We may even take any motion essential to convert GBTC to an ETF,” Salm affirmed, including:
The SEC’s actions associated to Bitcoin ETFs ought to be executed in a good and orderly method. As a disclosure-based regulator, the SEC shouldn’t choose winners and losers.
Moreover, Salm asserts that the SEC ought to present constant and equitable suggestions or steering to issuers with out taking part in favorites. He underlines the importance of approving all spot ETF purposes concurrently, guaranteeing that American traders are protected and have entry to various BTC funding alternatives.
GBTC, holding over $18 billion in property underneath administration, represents a flagship BTC fund that has been persistently looking for conversion right into a spot ETF. The inexperienced gentle for spot ETFs would grant establishments a gateway to BTC publicity with out immediately holding the digital asset, additional endorsing crypto as a legit asset class.
Whereas a flurry of spot Bitcoin ETF purposes has inundated the SEC’s desk, the regulator has been cautious in its method, voicing considerations about potential fraud and manipulation. BlackRock, Constancy, WisdomTree, and Invesco are among the many distinguished companies vying for approval, turning the race right into a regulatory problem.
Addressing the SEC’s apprehensions, some candidates, together with BlackRock, have finalized surveillance-sharing agreements with crypto change Coinbase, designed to make sure complete monitoring of markets and examine potential manipulation.
At press time, the BTC value stood at $29,133.
Featured picture from Day by day Kryptonite, chart from TradingView.com