It is an unpopular opinion to think that Grayscale’s spot-based bitcoin ETF might get approved, but the company is gearing up for confidence and looks like they won’t take a ‘no’ for an answer.
The company has explained several times that the Grayscale Bitcoin Trust (GBTC) aims to eventually turn into an ETF. Currently, GBTC “provides liquidity through the OTCQX market,” so by converting it to an ETF it would elevate NYSE Arca shares from OTCQX.
The company is “committed to building a competitive spot-based bitcoin ETF product”, and even though many are extremely exceptional that their ETF will soon be approved by the Securities and Exchange Commission (SEC), Grayscale CEO Michael Sonnenshein of Washington The reason behind his steady confidence shared during the live post.
Why does Sonnenshin believe this might be the case?
The CEO claims that “there has been a real evolution in the thinking we’ve seen from the SEC.”
“Historically, no ETFs around bitcoin were allowed to enter the market, and a few months ago, they allowed the first bitcoin futures product to enter the market. Historically, the SEC stated that they were allowed to enter the market under bitcoin. There was concern on the market. Was there any fraud? Was there any manipulation? Was there enough monitoring?”
Sonnenshein considers the way the SEC has developed bitcoin, noting that “now the SEC has approved the bitcoin spot ETF under the ’33 Act.” For this reason, the CEO also believes that “the next natural step for the SEC is to approve the spot bitcoin ETF.”
The CEO suggested that approval to convert the product to a bitcoin ETF would “bring it closer to the regulatory fringes of the SEC”, so in his view it would be a ‘win-win’.
But by saying he is preparing for a less amicable solution, remarking that there may be “potential grounds for an Administrative Procedure Act” if the SEC does not approve the ETF, reminding that the company will file a lawsuit against the SEC. can take legal action.
The CEO claims that the SEC is treating futures products favorably as opposed to spot products, which may prove against the law.
“If the SEC cannot look at two similar issues, the Futures ETF and the Spot ETF, through the same lens, then this is, in fact, potential grounds for a violation of the Administrative Procedure Act,” he said.
“Who is the SEC protecting by not approving this product?” “It’s very rare that you ask asset managers and companies to ask the regulator to bring their products under their purview,” Sonnenshin vehemently asked.
The SEC’s inbox is filled with letters from investors who want this ETF approved. The company sees this as a positive sign and believes that “it is significant that the SEC has sought public comments on the decision.”
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Already planning an aftermatch?
The approval deadline is July 6th and Grayscale isn’t working.
VP of Corporate Communications at Grayscale Jennifer Rosenthal Having said That the company is “preparing for all scenarios”:
“We have ensured that GBTC is operationally ready to convert to an ETF and are exploring alternatives if the SEC does not allow GBTC to be converted to an ETF,” Rosenthal shared.
gearing up, company just added Donald B. Verilli Jr. to his legal team. Lawyer Verilli served as deputy counsel to President Obama and was the 46th Solicitor General of the United States. Virilli has achieved such an impressive trajectory throughout his career, this move to Grayscale confirms that they are indeed “preparing for all scenarios”.
Rosenthal thinks that “it is paramount that scale Have the strongest legal minds working on our application to convert $GBTC to one ETFs.”
“He is one of the most experienced lawyers in the country with a deep understanding of legal theory, administrative procedure and practical matters of dealing with the judiciary branch.
Over the course of his career, he has argued in more than 50 cases before the Supreme Court of the United States, including many that deal directly with Administrative Procedure Act (APA) violations. Grayscale said.
It looks like Grayscale knows that July 6th probably won’t be a day to celebrate, but “when not then what” will remain their crypto motto.
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