Grayscale challenges SEC on Blackrock filing to ensure fair approval of Bitcoin ETPs

2023-7-28 13:00

Cryptocurrency asset manager Grayscale Investments has sent a letter to the U.S. Securities and Exchange Commission (SEC) arguing that new spot Bitcoin ETF filings such as Blackrock’s, based on prior rulings, should not be approved according to precedent.

The letter argues that the regulator must approve any spot bitcoin exchange-traded products (ETPs) in a consistent and even-handed manner, commenting that including a surveillance sharing agreement with Coinbase is insufficiently different from previously rejected filings.

However, if the recent ETF filings are approved, Grayscale requests its rejected application also be approved simultaneously to allow for the conversation of GBTC into a spot Bitcoin ETF.

Grayscale Bitcoin Trust conversion

Grayscale operates the Grayscale Bitcoin Trust (GBTC), which holds Bitcoin directly in trust. Grayscale initially filed to have GBTC listed for trading on the NYSE Arca exchange but was rejected by the SEC in 2022, a decision the firm is now challenging in court.

In the past month, asset managers have submitted several other spot Bitcoin ETP filings to the SEC, including BlackRock, ArkInvest, and VanEck. These new filings mention planned surveillance-sharing agreements with crypto exchange Coinbase. Some observers think such agreements could pave the way for SEC approval this time around.

However, Grayscale highlighted, the SEC has previously indicated that surveillance-sharing with an unregulated trading platform like Coinbase does not alone satisfy the criteria for approving a Bitcoin ETP. So if the SEC now reverses course based on the Coinbase agreements, this would represent an inconsistent change in policy. The letter states,

“But as the Commission knows, the possibility of a surveillance-sharing agreement between a listing exchange and a spot bitcoin trading venue is not a new idea. Indeed, Grayscale discussed the viability of this approach with Commission staff in 2019.”

According to Grayscale’s letter, surveillance-sharing with a regulated Bitcoin futures market such as the Chicago Mercantile Exchange (CME) is by itself enough to meet regulatory requirements for Bitcoin ETPs, according to SEC rulings on Bitcoin futures ETFs. Grayscale cited the below statement from the SEC.

“CME’s surveillance can reasonably be relied upon to capture the effects on the CME bitcoin futures market caused by a person attempting to manipulate the proposed futures ETP by manipulating the price of CME bitcoin futures contracts… indirectly by trading outside of the CME bitcoin futures market”

The letter continued to state the above makes clear that “the Commission recognizes that CME’s surveillance can capture the effects of trading on bitcoin spot markets.”

Given this precedent, Grayscale argued that if the SEC is open to considering Coinbase agreements as relevant, it must allow amendments to previously rejected filings like GBTC to include similar agreements as well.

The SEC should then approve all spot Bitcoin ETPs simultaneously to avoid unfair discrimination between issuers, satisfying principles of investor protection, fairness and due process. Specifically, the letter reads,

“Having previously rejected the argument that a surveillance-sharing agreement with a spot bitcoin trading venue would, in whole or in part, satisfy the Commission’s requirements for approving a spot bitcoin ETP, if the Commission decides to change course and approve one or more of the above-referenced spot bitcoin ETPs on this basis, it must do so in a fair and orderly manner—a manner that prioritizes the interests of investors, in particular the nearly one million who currently hold shares in the Trust.”

In essence, Grayscale contends the SEC must evaluate spot Bitcoin ETP proposals consistently, without abruptly altering course to benefit newer filings over prior ones.

The letter illustrates how the status of Bitcoin ETPs in the U.S. remains complex and contentious, with regulators and industry participants interpreting policy cues in very different ways. However, it may be seen by some as throwing cold water on the fire lit by institutional giants such as Blackrock’s Larry Fink pushing for better access to spot Bitcoin-exposed financial products.

The post Grayscale challenges SEC on Blackrock filing to ensure fair approval of Bitcoin ETPs appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 62109.66 (-0.03%)
Объем 24H $24.208b
Изменеия 24h: 0.65 %, 7d: -0.34 %
Cегодня L: $61392.69 - H: $62201.26
Капитализация $1223.47b Rank 1
Цена в час новости $ 29205.6 (112.66%)

grayscale blackrock bitcoin sec filings such etf

grayscale blackrock → Результатов: 18


CEO Grayscale уверен в победе над SEC в суде

В среду, 12 июля, портал Bloomberg опубликовал запись интервью с CEO компании Grayscale Investments Майклом Зонненшайном. В рамках беседы участники затронули ряд вопросов. В частности, это судебное разбирательство с Комиссией по ценным бумагам и биржам США (SEC), сделка с хедж-фондом Fir Tree Capital Management, а также заявка компании BlackRock на регистрацию спотового биткоин-ETF. На вопрос ведущей о том, что […]

2023-7-14 13:53


Гендиректор Grayscale: Инвесторы рассматривают биткоин как класс активов

По мнению генерального директора Grayscale Investments Майкла Зонненшайна, биткоин уже сформировался как отдельный класс активов. В эфире телеканала CNBC 12 июля он заявил, что заявка BlackRock на выпуск биткоин-ETF – это важное событие для всей индустрии.

2023-7-13 10:07


Торговый объем BTC-трастом Grayscale вырос в пять раз

Торговый оборот GBTC от Grayscale Investments подскочил на 400%, с $16,1 млн до $80 млн. Так рынок отреагировал на подачу BlackRock заявки в SEC на создание биткоин-ETF. В октябре 2021 года Grayscale направила соответствующую заявку.

2023-6-22 16:07


Fidelity Investments Follows BlackRock’s Footsteps, prepares an Application for a Bitcoin Exchange-Traded Fund (ETF)

In a groundbreaking development, Fidelity Investments, a financial giant managing over $4.2 trillion in assets, is reportedly gearing up to enter the Bitcoin market in a significant way. The firm is said to be preparing an application for a Bitcoin Exchange-Traded Fund (ETF) and is considering a bid to acquire Grayscale, a leading digital currency […] The post Fidelity Investments Follows BlackRock’s Footsteps, prepares an Application for a Bitcoin Exchange-Traded Fund (ETF) appeared first on CaptainAltcoin.

2023-6-19 17:43


Fidelity Rumored To File Bitcoin Spot ETF In US, Bid For Grayscale

The application of the world’s largest asset manager ($9.57 trillion AUM), BlackRock, for a Bitcoin spot ETF has generated bullish momentum in the past second half of last week. Experts believe the application has a strong chance of being approved, given BlackRock’s strong political connections and its staggering success rate with ETF applications. Out of […]

2023-6-19 13:30


Приближается самая сильная фаза бычьего рынка

Grayscale за 30 дней добавила к своим активам BTC на сумму 2 миллиарда долларов, Blackrock и Goldman Sachs приходят в крипто, количество BTC-китов бьет рекорды. За последние 30 дней количество BTC под управлением Grayscale увеличилось еще на 64 874 единицы общей стоимостью 2,2 млрд $.

2021-1-25 13:33