Grayscale’s Chief Legal Officer, Craig Salm, awaits further Bitcoin ETF approvals from the SEC. Converting GBTC to an ETF will align GBTC shares with Bitcoin’s net asset value. Bloomberg ETF analysts have increased the chances of a spot Bitcoin ETF launching this year to 65%.
Grayscale victory and spot Bitcoin ETF approval!
Grayscale Chief Legal Officer Craig Salm says that if the U.S. Securities and Exchange Commission (SEC) loses the Grayscale lawsuit, it may soon approve Bitcoin exchange-traded funds (ETFs). It’s possible that the judge will make a decision on Grayscale’s case within the next month. If that decision comes through, Salm expects ETF approvals to occur in October. According to Salm, many companies are waiting for decisions regarding applications to be approved by Grayscale’s victory.
As you follow on Kriptokoin.com, last year the SEC rejected an application to convert Grayscale Bitcoin-Trust into a spot ETF. After that, Grayscale sued the SEC. Former Obama attorney Donald B. Verrilli Jr. He claims the SEC’s decision was ‘arbitrary and capricious’. Because he states that the SEC has rejected an application that references the same Bitcoin price reference as several approved Bitcoin futures ETFs. If Grayscale wins, it’s possible for GBTC shareholders to align the trust’s shares with Bitcoin’s net asset value.
GBTC Shares Are Discounted Compared To The Underlying Bitcoin. Source: GrayscaleThis year, giants have also applied for spot Bitcoin ETFs
Last month, BlackRock, Fidelity, and others also filed with the SEC to launch spot Bitcoin ETFs. Also, its CEO, Larry Fink, appeared on Fox News after the application to promote the product. It is noteworthy that BlackRock’s application lists the CME/CF ratio used by other BTC exchange traded products in the US. CME price is taken from several reliable exchanges, which reduces the possibility of market manipulation.
Will ETF rejections hurt Gary Gensler politically?
Craig Salm’s views echo those of Bloomberg ETF analysts Eric Bahunas and James Seyffert, who recently put the probability of a spot Bitcoin ETF launching this year at 65%. Analysts suggest BlackRock and Democrats could make the ETF rejection “politically untenable” for SEC chairman Gary Gensler.
Also, Bahunas and Seyffert point to the SEC’s tacit approval of Coinbase into the Bitcoin business. He states that this signals a softening stance from the SEC. Meanwhile, Gary Gensler has previously said that Bitcoin is a commodity. If these views become law, it’s possible that Bitcoin will move the issue of regulation and enforcement away from the SEC. Meanwhile, Grayscale raised $40 million from GBTC and Ethereum Trusts in July.
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