Grayscale Investments, the firm behind one of the most popular Bitcoin investment products, the Grayscale Bitcoin Trust (GBTC), has submitted a notable letter to the U.S. Securities and Exchange Commission (SEC) concerning the hotly anticipated approval of Bitcoin exchange-traded funds (ETFs).
In a series of tweets, ETF analyst Nate Geraci detailed the main points of Grayscale's letter, underscoring the firm's demand for fair treatment in the race for Bitcoin ETF approval.
At the heart of the matter lies the Surveillance Sharing Agreement (SSA) with Coinbase, which Grayscale suggests will not be sufficient to warrant approval of spot Bitcoin ETFs.
This crucial assertion can be seen as a challenge to the SEC's potential plans for granting other spot Bitcoin ETFs approval ahead of Grayscale's GBTC conversion. Geraci notes, "Grayscale is basically saying that if SSA with Coinbase is the game-changer for spot Bitcoin ETF approval, then that would run counter to SEC's previous denials and put Grayscale at an unfair disadvantage."In a climate where financial giants including BlackRock and WisdomTree are lining up for a chance to launch their Bitcoin ETFs, Grayscale's move seeks to ensure a level playing field. The firm's chief legal officer stated, "The SEC should not pick winners and losers," highlighting concerns that the regulatory body might prioritize other spot Bitcoin ETFs over GBTC's conversion.
However, despite the potential regulatory challenges, Geraci sees Grayscale's stance as a bullish sign for the future approval of spot Bitcoin ETFs.
Geraci suggests that Grayscale's assertiveness implies they believe the Coinbase SSA might now meet the SEC's standards, which would mean Grayscale should be allowed to amend its previously disapproved filing to launch its offering simultaneously with others.