Legal representatives from Grayscale Investments have penned a formal letter to the United States Securities and Exchange Commission (SEC), urging a meeting to accelerate the approval process for a Bitcoin exchange-traded fund (ETF).
In the letter, they expressed their eagerness to meet with the SEC staff ‘as soon as practical,’ stating:
‘We would appreciate the opportunity to meet with the staff of the Securities and Exchange Commission as soon as practical.’
Grayscale Sees No Ongoing SEC Hurdles for Bitcoin ETF Approval
As outlined in a recent communication, Grayscale has called upon the US Securities and Exchange Commission to pause any ongoing legal proceedings related to the transformation of its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
This development follows the approval by the US Court of Appeals of Grayscale’s request for the SEC to reevaluate its Bitcoin ETF application, previously denied by the SEC. The court concurred with Grayscale’s argument that the absence of a surveillance-sharing agreement did not constitute a valid objection.
Grayscale strengthened its case by drawing parallels with Bitcoin Futures products, which also rely on Bitcoin’s underlying price. The letter stated:
‘We believe the Commission should conclude that there are no grounds for treating the Trust differently from ETPs that invest in bitcoin futures contracts traded on the Chicago Mercantile Exchange (“CME”) whose Rule 19b-4 filings the Commission has previously approved.’
Confidence in Approval
Grayscale maintains that there are no additional arguments against a Bitcoin ETF product, and any further objections would have already come to light. The letter continued:
‘We are confident that it would have surfaced by now in one of the fifteen Commission orders that rejected spot bitcoin Rule 19b-4 filings.’
Grayscale is suggesting that the SEC should ‘proceed promptly’ with the approval of the GBTC’s conversion into a Bitcoin ETF. It further contends that there are no rational grounds available to reject the product, noting:
‘There is no available rationale that would distinguish a bitcoin futures ETP from a spot bitcoin ETP under the legal analysis,’ the letter further noted.