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Grayscale Investments is urging the U.S. SEC to forestall what it phrases an “unfairly discriminatory and prejudicial first-mover advantage,” for potential Bitcoin ETF issuers:
1/ Yesterday @Grayscale despatched a remark letter to $GBTC and different spot #bitcoin ETF recordsdata restating that the SEC is in a place to approve all spot bitcoin ETFs *now*, and likewise commenting on the just lately proposed SSAs. This thread clarifies some high-level factors of the letter:
— Craig Salm (@CraigSalm) July 28, 2023
Grayscale, which is at present in a authorized dispute with the SEC following the regulator’s refusal to permit the conversion of its Bitcoin Trust to an ETF, outlined its stance in a letter penned by a authorized consultant:
“As a disclosure-based regulator, the SEC should not pick winners and losers; instead, the SEC should continue to provide issuers with feedback or guidance consistently and equitably.”
This growth comes after functions by BlackRock, Valkyrie, Invesco and others launched a Spot Bitcoin ETF utility to the SEC, which seems to have spurred further functions upon the SEC rejection.
In an SEC submitting, Nasdaq just lately disclosed that it reached phrases for a surveillance-sharing settlement with Coinbase regarding the itemizing of BlackRock’s proposed ETF. Other exchanges, resembling Cboe, have included comparable language of their proposals.
Grayscale’s Chief Legal Officer, Craig Salm, opined that the SEC is now in a place to approve Bitcoin ETPs because it had beforehand given the nod to Bitcoin futures ETFs.
3/ This is nice. Because it means spot #bitcoin ETFs could be permitted *immediately* even earlier than the proposed SSAs with spot bitcoin markets are prepared — which is able to take time to really enter into, construct out the tech, achieve regulators’ approval and so on.
— Craig Salm (@CraigSalm) July 28, 2023
Grayscale is advocating for the simultaneous approval of all Bitcoin ETF proposals, fearing that solely sanctioning the most up-to-date candidates would counsel a drastic shift in the SEC’s utility of regulatory requirements:
“Although Grayscale strongly supports a Commission approach that would facilitate approval of all spot bitcoin ETP proposals, approving only the above-referenced proposals would reflect a positive but sudden and significant change in the Commission’s application of the relevant statutory standard.”