• Grayscale Investments is asking the SEC to approve all filed applications for a spot Bitcoin ETF
• Grayscale’s request includes previously disapproved Trusts and suggests that Bitcoin Futures and Spot ETFs be approved together
• The SEC may not be pleased with Coinbase’s SSA due to their lack of registration as a securities exchange or broker-dealer
Grayscale Urges Simultaneous Approval of All Proposed Spot Bitcoin ETFs
Asset management firm Grayscale Investments is urging American regulator, the Securities and Exchange Commission (SEC), to simultaneously approve all the filed applications for a spot Bitcoin (BTC) Exchange Traded Fund (ETF). Craig Salm, Grayscale’s Chief Legal Officer made a post earlier this week referring to a letter that its legal team submitted highlighting the 8 spot Bitcoin ETFs filings that the SEC has received so far.
Grayscale Advocates Fairness in Approval Process
He then urged that no favorites should be picked, instead, they should be approved at the same time, showing fairness and order. This request sounds like the most reasonable thing to do considering the fact that it would offer equal opportunities to all concerned parties and offer fairness. Grayscale advocacy for approval also includes those “Trust whose Rule 19b-4 filings were previously disapproved after lengthy Commission consideration.” Furthermore, Salm advised that the regulator approves the funds in the same manner as BTC Futures ETFs which according to the letter are two funds types that are “inextricably linked.”
SEC May Not Agree with Coinbase SSA
Noteworthy, many investment asset managers including Invesco, BlackRock, Valkyrie, VanEck, WisdomTree, Fidelity and ARK Invest have adopted surveillance sharing agreements (SSAs) with United States-based cryptocurrency exchange Coinbase as requested by the SEC. They have updated their spot Bitcoin ETF applications with the securities watchdog to include their SSAs. The addition of an SSA makes it easier for the SEC to monitor the market effectively and avoid manipulation as well as other irregular trading activities. However, Grayscale believes that the regulator would not be pleased with agreement with Coinbase as crypto firm is not registered as a securities exchange or broker-dealer with commission nor with Commodity Futures Trading Commission (CFTC) as futures exchange.
SEC Lawsuit Against Coinbase & Binance
In June when American regulator filed lawsuit against Coinbase , few hours after leading cryptocurrency exchange Binance was equally sued , it was said that digital asset service provider was operating without required registration from both agency .
Overall , Grayscale Investment pushing for simultaneous approval on all spot bitcoin etf applications is reasonable demand .It will ensure fair competition while offering equal opportunities for all concerned parties . However , It remains unclear if regulator will agree on Coinbase SSA due to lack of registration from both agencies .