Grayscale pours cold water on wave of new spot bitcoin ETF applications

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By BitcoinWiki News

Key Takeaways:

– Grayscale, an asset management company, opposes the idea of surveillance-sharing agreements with Coinbase for spot bitcoin ETFs.
– The SEC is currently reviewing applications for spot funds from various fund managers.
– Grayscale previously had its proposal for a spot bitcoin ETF rejected by the SEC, leading to a lawsuit against the regulator.
– The company argues that the SEC could approve a spot fund using the existing standard it has used for bitcoin futures ETFs.
– Grayscale supports a regulatory approval that includes all previously disapproved spot bitcoin ETF proposals.
– SEC Chair Gary Gensler expresses skepticism about crypto markets and the pending ETF applications.
– Grayscale lawyers criticize the SEC for approving a leveraged bitcoin futures ETP while rejecting spot bitcoin ETPs.
– Grayscale’s opposition to surveillance-sharing agreements and its legal battles highlight the complexities and challenges surrounding bitcoin ETFs.


Asset management company Grayscale has expressed doubt over the need for surveillance-sharing agreements with Coinbase in its pursuit of spot bitcoin ETFs. In a letter to the Securities and Exchange Commission (SEC), Grayscale argued that these agreements would neither satisfy nor be necessary under the current regulatory standards. The SEC is currently reviewing applications for spot funds from several fund managers, including BlackRock and Fidelity. Grayscale itself had previously proposed converting its flagship GBTC fund into a spot bitcoin ETF but was rejected by the SEC. The company’s lawyer suggested that the SEC already has the ability to approve a spot fund using the same standard it has used for bitcoin futures ETFs. However, any sudden approval of the recent wave of applications without the inclusion of previously disapproved proposals would be seen as granting an unfair advantage. Grayscale supports a regulatory approval that would facilitate the approval of all spot bitcoin ETF proposals. The lawyer also highlighted the SEC’s previous skepticism towards unregulated bitcoin trading venues and questioned the relevance of surveillance-sharing agreements with Coinbase. In a recent televised interview, SEC Chair Gary Gensler expressed continued skepticism about crypto markets.

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