As part of Grayscale’s application to convert GBTC to an ETF, there is a standard 240-day review period during which the public is invited to submit comments to the SEC for consideration. In a February 2022 notice, the SEC requested comments from the American public, saying: “The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice, in addition to any other comments they may wish to submit about the proposed rule change.”
“American investors should have a choice in how to obtain Bitcoin exposure,” said Grayscale CEO Michael Sonnenshein. “Every day I hear from investors who are patiently waiting for the familiarity and protections of a Spot Bitcoin ETF. We will use the strength of Grayscale’s brand and resources to continue to advocate for these investors and ensure that the investing public is aware of the unique opportunity they have to voice their opinions directly to the SEC – a critical part of our existing regulatory process.”
Grayscale has set up a dedicated campaign page to encourage investors to comment.
“The hundreds of comments already submitted on behalf of GBTC’s conversion to an ETF further demonstrates that this issue is of the utmost importance to investors,” Sonnenshein added. “It is clear we have reached a tipping point in the adoption of digital assets. Maintaining the regulatory status quo may feel like the safe option, but the reality is that failing to keep pace with change is the far riskier path for main street investors and our country.”
To date, the SEC has only permitted bitcoin futures ETFs and rejected spot bitcoin ETFs. Grayscale filed for the conversion in October of 2021. In December, Grayscale prepared to sue SEC with a pre-action letter arguing that the SEC’s decision to allow a futures ETF but not a spot bitcoin one is “arbitrary and capricious.”
The SEC is required to post, review, and address each comment submitted in accordance with this process. Other comments from American investors, financial advisors, lawyers, and advocates can be found on the SEC’s website.
Interested people can follow these directions to submit comments to the SEC by February 25th, when comments close.
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