Crypto Stories

Bitcoin ETF: SEC Delays Decision On Grayscale’s Oct. 2021 Bitcoin ETF Again

By Gitumani Talukdar
Published February 5, 2022 Updated February 5, 2022

On 4th February 2022, U.S. SEC announced delaying its ruling for Grayscale’s BTC ETF application. In October 2021, Grayscale registered its application with the SEC. The file stated Grayscale BTC Trust transformation into bitcoin spot ETF.

Formerly, the SEC has abandoned spot bitcoin ETF applications from Fidelity, Krypton, SkyBridge, and WisdomTree. The judgment that’s to be passed onto Grayscale’s pending application is reported to be set back by the U.S. Securities and Exchange Commission (SEC). Grayscale is the largest digital asset manager globally with $36.5 billion in assets. No wonder, the SEC’s notice broadcasted on Friday didn’t state anything exceptional. Because the notice is connected with Grayscale’s pending application.

SEC Demands “Written Compliances”

The SEC has particularly demanded ‘written compliance from the applicant.’ The 10-page long notice details about this demand to be fulfilled by the interested persons belonging to the general public. SEC called for the written comments related to the general public’s views, data, and arguments. These views must highlight the regulator’s former concerns about market fraud, manipulation, and overall market liquidity.

The notice states that the public can occupy only 21 days from today to present the written data, views, and arguments. Based on the written application, it’s to be decided whether to approve or reject Grayscale’s application. The interested group of people from the general public can submit their comments to the SEC either electronically (via email) or via paper. The following email address can be used ‘[email protected]’ with the subject line ” File Number SR-NYSEArca-2021-90.

SEC’s Model to Reject Spot ETF Applications

Grayscale cataloged its application in October 2021 for converting shares of its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. But, in December 2021, the SEC announced postponing its decision on Grayscale’s application. This decision was concerning market fraud, manipulation, and transparency. Grayscale’s recent tweet showcases that it has $36.5 billion in assets under management. Lately, on February 4, 2022, Grayscale tweeted again stating its GBTC product accounted for over 71% of its total assets.

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