Grayscale’s Bitcoin ETF gains public support

The U.S. Securities and Exchange Commission (SEC) запросила public comments regarding a spot Bitcoin ETF from Grayscale Investments. According to Bloomberg Intelligence analyst Eric Balchunas, 95% support launching the instrument.

Just glancing through the many comments from ppl to the SEC re converting $GBTC to an ETF and 95% are in favor of it and most using real names and pointing to the stupefying fact that futures ETF ok but spot not. eg: pic.twitter.com/j15iNYnh8R

— Eric Balchunas (@EricBalchunas) February 14, 2022

In October 2021, the founder and CEO of Digital Currency Group, the parent company of Grayscale Investments, Barry Silbert confirmed plans to convert Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.

According to a screenshot provided by the analyst, after approval of a futures ETF “there’s no reason to ban a pure Bitcoin ETF with physical backing.” The author noted that the United States “is already lagging behind other countries, such as Canada,” in approving the spot variant.

“We need to stay competitive […]. Bitcoin at present represents a protected asset class that has never been hacked and has delivered excellent profits year after year,” the comment reads.

In another Balchunas tweet, he quotes an investor who put savings into GBTC. In his view, the SEC “protects the wealthy.”

One participant noted that the equity market can be just as manipulated and volatile as cryptocurrency. As an example, he cited the GameStop incident.

Here’s one pointing out how the stock market can be just as manipulated and volatile as crypto pic.twitter.com/krToLZ36Gw

— Eric Balchunas (@EricBalchunas) February 14, 2022

On October 19, 2021, Grayscale filed an application to convert the digital-gold trust into an exchange-traded fund based on the leading cryptocurrency.

On December 17, the SEC delayed a decision until February 6, 2022.

Earlier the regulator approved applications to launch Bitcoin futures ETFs from VanEck and Valkyrie Investments, as well as ProShares. Grayscale Investments called the regulator’s actions “arbitrary and unlawful.”

In December, the regulator rejected WisdomTree’s bid to launch a spot Bitcoin ETF. Earlier the Commission took a similar decision regarding a comparable proposal from VanEck.

In February 2022, the SEC delayed a decision on Grayscale’s application to study the firm’s ability to curb fraudulent or manipulative practices in the spot market.

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