As the U.S. Securities and Exchange Commission is considering whether to approve or deny asset manager Grayscaleโs application for a Bitcoin spot exchange-traded fund (ETF), the firm has called on American investors to submit comments to the regulator.
In a Tuesday Twitter thread, Grayscale CEO Michael Sonnenshein announced the launch of an advocacy campaign for U.S.-based investors to speak their minds to the SEC before any final decision is reached on the Bitcoin (BTC) investment vehicle. Since the NYSE Arca filed with the regulatory body on Oct. 19 to list shares of Grayscaleโs Bitcoin ETF under the ticker GBTC, the commission has delayed its decision on Dec. 15 and again on Feb. 4.
โThis campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,โ said Sonnenshein.
Today @Grayscale announced the launch of a new public campaign to encourage American investors to submit comments on our application with the SEC to convert $GBTC to a Spot Bitcoin ETF.
โ Sonnenshein (@Sonnenshein) February 22, 2022
According to Grayscaleโs chief legal officer Craig Salm, the firm has already received more than 200 letters in support of the SEC allowing the firm to convert its Bitcoin Trust into a physically-backed fund. Salm said some of the common themes from the feedback included calling a crypto ETF โin the publicโs best interest,โ allowing the United States to stay competitive with innovative investment vehicles, and calling out the SECโs โnonsensicalโ approach in approving ETFs linked to Bitcoin futures but not BTC spot ETFs.
The Feb. 4 deferment from the SEC opened the floor to โinterested persons to provide comments on the proposed rule changeโ for Grayscaleโs BTC spot ETF. The regulatory body has the ability to extend the deliberation window up to 240 days from when the proposed rule change was published in the Federal Register on Nov. 8, meaning the SEC should reach a decision before July 6, 2022.
To date, the SEC has not approved any investment vehicle with direct exposure to crypto. Grayscale filed an application to restructure its Bitcoin Trust into an ETF in October shortly after the SEC approved ProSharesโ Bitcoin Strategy ETF for listing on the New York Stock Exchange and shares of crypto-asset manager Valkyrieโs Bitcoin ETF fund on the Nasdaq Stock Market.
Related: Hereโs why the SEC keeps rejecting spot Bitcoin ETF applications
If approved by the SEC, Grayscale would have the first publicly listed Bitcoin spot ETF available in the United States. This year, the regulator has already rejected applications for Fidelityโs Wise Origin Bitcoin Trust and First Trust SkyBridge Bitcoin ETF Trust but is expected to reach a decision on NYDIGโs spot Bitcoin ETF and โโasset manager Stone Ridge Holdings Groupโs BTC ETF in March.
