Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF

Digital asset supervisor Grayscale reported overwhelming help in public feedback for its software to launch a spot Bitcoin exchange-traded fund.

In a Monday letter to buyers, Grayscale stated that of the greater than 11,400 letters the USA Securities and Trade Fee, or SEC, had acquired with regard to its proposed Bitcoin (BTC) funding car, “99.96 p.c of these remark letters had been supportive of Grayscale’s case” as of June 9. In accordance with Grayscale, roughly 33% of the letters questioned the shortage of a spot BTC ETF within the U.S. given the SEC had already permitted funding automobiles linked to Bitcoin futures, as was the case for ProShares and Valkyrie.

“The SEC’s actions over the previous eight months […] have signaled an elevated recognition of and luxury with the maturity of the underlying Bitcoin market,” stated Grayscale CEO Michael Sonnenshein. “The approval of each Bitcoin-linked funding product strengthens our arguments about why the U.S. market deserves a spot Bitcoin ETF.”

The regulatory physique is presently reviewing Grayscale’s software permitting the agency to transform shares of its Bitcoin Belief (GBTC) right into a physically-backed fund, which, if permitted, can be the primary spot BTC ETF providing in the USA. The applying is nearing the top of a 240-day assessment course of which began in November 2021 and ends on July 6.

Although Grayscale’s marketing campaign to encourage public feedback with the SEC has been ongoing since February, many trade specialists have prompt the regulatory physique approving such an providing was unlikely. The SEC rejected comparable functions from NYDIG, and International X as just lately as March, and One River Digital in Might. SEC chair Gary Gensler has typically pivoted in interviews when questioned as to when the fee may approve a spot Bitcoin ETF, saying in February that he would give the matter “cautious consideration.”

“[In my opinion] the possibilities of $GBTC being allowed to transform to an ETF subsequent week are 0.5%,” said Bloomberg ETF analyst Eric Balchunas. “About the identical odds the NY Jets have of profitable the Tremendous Bowl.”

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It’s unclear what strikes Grayscale could make if the SEC denies its software subsequent week. The agency stated it was “unequivocally dedicated” to changing its BTC belief to an ETF, hiring a former U.S. Solicitor Basic in June to work as a senior authorized strategist for its software. In Might, the digital asset supervisor launched a crypto-linked ETF on the London Inventory Trade, Borsa Italiana and Deutsche Börse Xetra.