Grayscale is working with the SEC to actively launch a BTC spot ETF?

According to Bitcoin Magazine, Grayscale CEO said that Grayscale is actively working with the U.S. Securities and Exchange Commission (SEC) to convert GBTC into a Bitcoin spot ETF.

Since Grayscale applied to the US SEC through NYSE Arca to convert the Grayscale Bitcoin Trust (code: GBTC) into a BTC spot ETF in October last year, Grayscale CEO Michael Sonnenshein has been committed to the approval of the BTC spot ETF and said that the launch of a spot Bitcoin ETF is the company's top priority.

It is reported that Grayscale will run large-scale advertisements on public transportation in New York and Washington, D.C. from April 6 to early July to increase the chances of converting GBTC into exchange-traded funds (ETFs).

On March 29, Grayscale CEO Michael Sonnenshein said in an interview with Bloomberg that the U.S. Securities and Exchange Commission has approved Bitcoin futures ETFs, but has repeatedly rejected spot ETF applications. Investors are looking forward to the passage of Bitcoin spot ETFs, which is only a matter of time. Spot-traded ETFs track the price of the underlying asset like stocks, making it easier for investors to access the asset. If the application of the Bitcoin Trust Fund (GBTC) to convert into a trading platform exchange-traded fund (ETF) is rejected, Grayscale may sue the U.S. Securities and Exchange Commission. The current deadline for the SEC to approve or reject the application is July 6.

In order to promote the approval of the BTC spot ETF, Grayscale officials also stated on social media in February that if GBTC can be converted into a Bitcoin spot ETF, the product will reduce management fees, and called on investors to comment and support under the relevant public opinion solicitation column of the SEC.

Data shows that the current asset management scale of Grayscale Bitcoin Trust exceeds US$25.2 billion.

Although Grayscale has been operating actively, the SEC is very cautious about approving the BTC spot ETF.

According to a filing, on April 1, the SEC has rejected Ark 21Shares' application for a spot Bitcoin exchange-traded fund (ETF) citing a lack of investor protection. Ark is run by celebrity investor Cathie Wood, and the application was filed on behalf of the Cboe BZX exchange to change the rules to allow Ark 21Shares to be listed. Ark Investment Management and investment product company 21Shares had partnered to launch the product in July last year. Ark 21Shares' initial application was delayed several times, the last time in January.

In addition, the SEC postponed the deadline for deciding whether to approve the listing of WisdomTree and One River spot Bitcoin ETFs on March 22. The SEC extended the approval deadlines for WisdomTree Bitcoin Trust and One River Carbon Neutral Bitcoin Trust to May 15 and June 2, respectively.

So far, the SEC has not approved any spot Bitcoin ETF for listing , and has previously rejected several applications from WisdomTree, Krypton, Fidelity, and SkyBridge. In February of this year, the SEC also extended the approval period for Grayscale's BTC spot ETF application.

When will the spot ETF be approved? The industry is relatively optimistic about this.

Bloomberg Intelligence (BI) analysts James Seyffart and Eric Balchunas wrote in a report that spot Bitcoin exchange-traded funds (ETFs) could begin to be approved in early summer 2023, given the SEC's proposed rule changes to redefine exchanges. The report states: "By bringing cryptocurrency platforms into the SEC's regulatory framework, expanding the definition of an exchange could eliminate the agency's main objection to the product. Once cryptocurrency exchanges are compliant, the SEC's main reason for rejecting spot Bitcoin ETFs will no longer be valid, potentially clearing the way for approval."