Grayscale Wants the SEC to Approve All of Its Competitors’ Bitcoin ETFs Simultaneously For a Fair Playing Field

Grayscale Urges SEC to Prioritize Fairness and Equality in Bitcoin ETF Approval

Craig Salm, the Chief Legal Officer of Grayscale, has revealed that their legal team has sent a letter regarding eight spot Bitcoin ETF filings, including Grayscale’s. In the letter, the SEC has been urged to avoid showing favoritism and be fair and impartial instead.

The importance of treating all applicants equally when making decisions has been emphasized to ensure a level playing field.

The SEC should approve spot #bitcoin ETFs to trade in the US.
What’s more, their previous approval of bitcoin futures ETFs shows that they are already in a position to do so.
Read more about the latest from our legal team: https://t.co/UC8ksqNcwy $GBTC $BTC

— Grayscale (@Grayscale) July 27, 2023

According to Grayscale, this approach encourages competition and fosters innovation in the crypto market. Grayscale is simply requesting a fair deal from the SEC regarding Bitcoin ETFs. They believe that if the SEC has given the green light to Bitcoin futures ETFs connected to spot ETFs, they should also provide spot ETFs with a fair chance.

Grayscale doesn’t want the SEC to show favoritism and select some winners while leaving others behind. They just want a fair decision that benefits the industry without playing favorites.

Grayscale Voices Concerns About Coinbase’s Future

There is a discussion about the involvement of ETF providers with Coinbase. Grayscal believes these providers may not be new or meet SEC standards. However, some leading players like Sl and RK Income are making deals with Coinbase.

It seems like a regular occurrence, but some people like Butanest do not consider it as something special or new. Grayscal is not entirely skeptical, but they think the SEC might not be too impressed.

Some companies are joining forces with Coinbase to keep a close watch on the market and ensure everything is fair and secure. Other players in the financial market have reservations about these agreements.

They believe that such involvement may have some implications. However, Grayscal cannot say for sure what these implications may be, as the SEC is responsible for regulating and overseeing these matters.

Understanding SEC’s Potential Approvals and Their Impact on the Financial Market

Grayscale, a major player in the crypto investment space, has voiced concerns about the SEC’s potential approval of only a select few spot bitcoin ETF proposals. They argue that such a decision would create an unfair advantage for those chosen and goes against established standards. Furthermore, Grayscale questions the sufficiency of the applicants’ surveillance-sharing agreement with Coinbase, suggesting it may not meet the SEC’s requirements.

It is worth recalling that SEC had previously rejected Grayscale’s bid to convert its Bitcoin Trust into an ETF while approving several futures-based Bitcoin ETFs. Grayscale filed a lawsuit against the SEC for this denial. They manage the world’s largest bitcoin fund, GBTC, used by institutional investors to access bitcoin indirectly.

Last month, there was a surge in spot bitcoin ETF applications from prominent institutions like BlackRock and VanEck. Grayscale emphasizes that any approval should be fair and include all proposed spot Bitcoin ETPs, even those previously denied.

Hence, Grayscale does not believe that a surveillance-sharing agreement alone should guarantee approval for a spot bitcoin ETF, advocating for a more comprehensive and balanced approach from the SEC.

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