Grayscale, the world’s largest digital asset manager, has launched a campaign to put pressure on U.S. SEC regulators for the highly anticipated conversion of its BTC Trust into a spot-based exchange-traded fund. On Feb. 22 CEO Michael Sonnenshein tweeted the news that the quasi-online petition had gone live.
The campaign aims to educate and inspire the investment community to take action and make their voices heard. there is a standard 240-day review period during which the public is invited to submit comments and they intend to make the most if it.
The SEC has so far only permitted Bitcoin Futures ETFs
Anyone unfamiliar with the procedure to submit comments to the SEC will find help on the site. There’s also additional information about what an ETF conversion would mean for $GBTC. Grayscale believes that you should not be forced into a Futures-based product simply because it’s the only one that exists. The SEC has so far only permitted Bitcoin Futures ETFs, while rejecting “physically-backed” or Spot Bitcoin ETFs.
Grayscale is already the world’s largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Taking it to the next level seems like a sensible step and should not be obstructed by unnecessary bureaucracy and vested interests.
The campaign is not without it’s detractors, though most objections are personal attacks or speculation. There is no legal reason not to allow it, clearly, or there would be no need for procrastination. Those who dislike Grayscale for whatever reason are free to not use it.
Another follower tweeted: “Thank you for doing this, it was a very simple and easy process that you provided to respond directly to the SEC. Let’s flood the SEC’s in box with support for a Bitcoin spot ETF.”
If the conversion is approved, according to Grayscale,
- It would uplist from OTCQX to the New York Stock Exchange
- The ETF would more efficiently track the price of Bitcoin, effectively eliminating premiums and discounts
- Grayscale would reduce management fees for GBTC
