Grayscale Investments, a leading asset management firm in the cryptocurrency space, has issued a statement urging the US Securities and Exchange Commission (SEC) to treat all spot Bitcoin exchange-traded fund (ETF) applications equally.
Grayscale Calls for Equal Treatment for All Spot Bitcoin ETFs in Letter to SEC
The company expressed concerns that only a few ETF applications approved would give an “unfair” advantage to winning bids.
In a statement submitted to the SEC on Thursday, Grayscale stressed the need for equal treatment for all applicants, including themselves.
Grayscale is currently fighting a protracted legal battle to get its application approved to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.
The SEC has recently seen a surge in applications for spot Bitcoin ETFs from various financial institutions including Ark 21 Shares, Invesco Galaxy, BlackRock, Valkyrie, VanEck, WisdomTree and Wise Origin (Fidelity).
While acknowledging that approving such proposals could reflect a positive shift in the SEC's approach, Grayscale cautioned against giving “a discriminatory and biased first-mover advantage” to those elected.
In Grayscale's statement, concerns were expressed about the custody-sharing agreements that the applicants made with the cryptocurrency exchange Coinbase, suggesting that these agreements may not meet the requirements of the SEC.
Notably, the SEC had previously rejected Grayscale's application to convert GBTC to an ETF, but had approved several futures-based Bitcoin ETFs.
This led Grayscale to file a lawsuit against the SEC for rejecting the conversion in June of the previous year.
*Not investment advice.
