Grayscale Investments’ legal team has taken a proactive step in their ongoing effort to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF).
In a letter delivered to the U.S. Securities and Exchange Commission (SEC), they have strongly urged the SEC to approve NYSE Arca’s Rule 19b-4 filing and authorize cooperation between the regulatory body, Grayscale, and NYSE Arca to expedite the listing of the Trust’s shares as an ETF.
The recent breakthrough came on August 29, when the Court of Appeals for the DC Circuit unanimously overturned the SEC’s June 2022 denial of GBTC’s conversion to a spot Bitcoin ETF.
This development marks a pivotal moment in the cryptocurrency space, hailed as a victory by GBTC shareholders, Grayscale’s team, and the broader crypto and investment communities.
In collaboration with Davis Polk & Wardwell and Munger Tolles & Olsen, Grayscale’s legal team penned a letter to the SEC, emphasizing the significance of the court’s decision and offering compelling arguments in favor of GBTC’s conversion.
The letter highlighted there is no valid reason to distinguish between spot Bitcoin ETFs and futures ETFs. This point is supported by the fact that the SEC has previously rejected spot Bitcoin Rule 19b-4 filings.
The legal team highlighted an important issue – the Trust’s Rule 19b-4 filing has been pending for an unreasonably extended period, surpassing the allowable time frame set by Section 19(b) of the Exchange Act.
Grayscale’s Plea To The SEC
The company’s representatives concluded the letter with a compelling plea for regulatory approval, asserting that nearly one million investors eagerly anticipate a level playing field for GBTC.
With regulatory approval, GBTC is poised to become a fully operational ETF. This transition will provide investors with a streamlined and regulated avenue to explore Bitcoin. Both Grayscale and its investors eagerly anticipate further progress from the SEC.
The SEC’s response to Grayscale’s plea is anxiously awaited by the cryptocurrency community. They hope this decision will bring forth a new era of investment opportunities for Bitcoin. With bated breath, the industry now looks to the SEC as they hold the power in their hands.
