The US Securities and Exchange Commission (SEC) has been hesitant to approve a spot Bitcoin exchange-traded fund (ETF). The SEC Chair, Gary Gensler, has said that the commission is reluctant to approve a spot Bitcoin EF arguing that the crypto market was prone to manipulation.
Grayscale says the public supports a spot Bitcoin ETF
Grayscale is the world’s largest digital asset manager. It is among the companies that have filed for the approval of a spot Bitcoin ETF with the SEC. The digital asset manager has now reported that the public comments on its applications show there is massive support for a spot Bitcoin ETF.
Grayscale sent a letter to investors on Monday saying that it had received over 11,400 letters related to its proposed Bitcoin product. It said that “99.96 percent of those comment letters were supportive of Grayscale’s case.”
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The digital asset manager also said that around 33% of the letters questioned why the US failed to support the launch of a spot Bitcoin ETF. Moreover, the SEC has approved other investment products affiliated with Bitcoin, such as the ProShares and Valkyrie Bitcoin futures ETF approved last year.
The CEO of Grayscale, Michael Sonnenshein, said that “The SEC’s actions over the past eight months […] have signaled an increased recognition of and comfort with the maturity of the underlying Bitcoin market. The approval of each and every Bitcoin-linked investment product strengthens our arguments about why the US market deserves a spot Bitcoin ETF.”
Grayscale’s filing for a Bitcoin ETF
The Grayscale Bitcoin ETF application is still being reviewed by the SEC. Grayscale is requesting the SEC to allow it to convert the shares of the Bitcoin Trust (GBTC) into a physically-backed fund. If this application is approved, it will be the first spot Bitcoin ETF in the United States.
The application is near the end of a 240-day review period that started in November 2021 and ended on July 6. The Grayscale campaign has been encouraging public comments on this issue since February. Key industry players have opined that it was unlikely that the SEC would approve this product.
The SEC has rejected other applications, with the recently turned down applications being from NYDIG and GlobalX. Gensler has not been clear about being involved in a spot Bitcoin ETF, with the executive saying that he would give the matter a “careful consideration.”
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