Grayscale Urges SEC to Allow Conversion of Bitcoin Fund to ETF Following Court Loss
Summary:
Grayscale informs SEC of no legal reason to block Bitcoin fund conversion to ETF; requests meeting to discuss next steps after recent court loss. Company believes SEC should treat its fund the same as previously approved Bitcoin futures ETFs. Grayscale emphasizes lengthy waiting period for application, highlights fair playing field for investors. The discount on Grayscale's Bitcoin fund falls to 19.9% post-court ruling.
Asset manager Grayscale has informed the Securities and Exchange Commission (SEC) that there is no longer any legal reason to prevent the conversion of its flagship Bitcoin fund into a spot exchange-traded fund (ETF). Following a recent court loss, Grayscale's lawyers sent a letter to the SEC requesting a meeting to discuss the next steps. Grayscale stated that there is no rationale left to distinguish a Bitcoin futures ETF from a spot Bitcoin ETF, as previously argued by the SEC. The company believes that the SEC should treat its fund no differently than previously approved Bitcoin futures ETFs. Grayscale's application for conversion was denied by the SEC but was recently ruled against by a United States Appeals Court. The company emphasized that if there were any other reasons for rejection, they would have been made apparent in previous SEC orders. Grayscale also highlighted that its application has been pending for a significantly longer period than what is specified by the SEC's rules. The company concluded by stating that its investors deserve a fair playing field as quickly as possible. Since the court ruling, the discount on Grayscale's Bitcoin fund has fallen to 19.9%. The fund's discount had reached nearly negative 50% during a previous bear market.
Published At
9/6/2023 4:54:22 AM
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