Grayscale is one of the cryptocurrency companies pondering how to develop a Bitcoin exchange-traded fund (ETF).
It is a bitcoin asset management and digital currency investment organization. Its top executives have recently stated that they are willing to take on the SEC of the United States. If the application for a spot ETF is denied, this will occur.
Not Enough Protection to Investors
The company’s CEO is Michael Sonnenshein. He stated that the firm may file a lawsuit against the SEC under the Administrative Procedures Act. This is in consequence if their application for a Bitcoin ETF with the Securities and Exchange Commission is rejected.
Sonnenshein contends that the Securities and Exchange Commission (SEC) is not doing enough to protect investors. At the same time, the same individuals compels to deal with cryptography through various means and facilities. However, Grayscale’s CEO is optimistic that, given enough time, the regulator will approve the company’s Bitcoin spot ETF proposal.
Moreover, the conversion in question is the firm’s Grayscale Bitcoin Trust becoming a spot ETF. This means it will be able to track Bitcoin as an underlying asset directly.
The SEC will decide the status of the application, which has a deadline of July 6th this year. Grayscale claims to be devoting all of its efforts to the application and hopes to have it approved by the deadline.
According to Sonnenshein, the Grayscale Bitcoin Trust (GBTC) has around 800,000 accounts in the US alone. Since 2015, they have been trading. According to the Grayscale executive, if the Trust’s existing position is maintained, investors will expose to undue risk.
Because GBTC investors will not be able to use the so-called “ETF wrapper,” this is the case. This is a series of investor protection clauses that act as a safety net for investors in the event of an asset’s market movement.
Actually, Grayscale is a major player in the global cryptocurrency market. Since then, it has introduced a number of financial products targeted at offering direct or indirect exposure to cryptocurrencies like Bitcoin. The business has also been a strong advocate for crypto-friendly regulations in the United States and around the world.
On the other hand, it’s unclear whether the SEC will eventually approve Grayscale’s Bitcoin ETF filing. Crypto aficionados and investors are crossing their fingers that the regulator would see the market’s tangible opportunities of such a product.
Given the current market conditions, the SEC’s approval may just be the boost that cryptocurrencies require to gain greater popularity. This is particularly true when it comes to institutional investing.