Grayscale, the asset management firm, sent a letter to request for a meeting with the Securities and Exchange Commission (SEC) to discuss the conversion of its flagship Bitcoin fund into a spot exchange-traded fund (ETF). This move comes in response to a recent court ruling that favored Grayscale's application to transform its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Grayscale's Call for a Meeting
Grayscale has taken a proactive step by formally requesting a meeting with the SEC to deliberate the conversion of GBTC into a spot ETF. This initiative follows a notable court ruling that dealt a blow to the SEC's denial of Grayscale's application to restructure its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Legal Rationale for Conversion
Grayscale's legal team maintains that there is now no viable legal justification for blocking the conversion after the recent court decision. They argue that the court's ruling essentially equates Bitcoin futures ETFs and spot Bitcoin ETFs in terms of regulatory framework, making GBTC a strong candidate for approval.
Level Playing Field
Grayscale emphasizes that GBTC should be treated on par with Bitcoin futures ETFs, a stance reinforced by the recent court judgment. They assert that if there were any additional reasons to reject the conversion, those would have already surfaced in previous SEC decisions.
Grayscale underscores the fact that their application has been pending for an extended period, well beyond the SEC's stipulated timeline. They urge the SEC to expedite the process and provide investors with a clear regulatory framework for GBTC's conversion.
Grayscale's push for a meeting with the SEC marks a significant development in the ongoing effort to establish a Bitcoin ETF in the United States. The recent court ruling has bolstered Grayscale's position, and they are now seeking swift resolution to provide clarity for their investors.