Grayscale urges SEC to approve all Bitcoin ETFs applications simultaneously

Grayscale Investment urged the US Securities & Exchange Commission to approve all spot Bitcoin exchange-traded fund filings simultaneously, according to Thursday’s letter. The asset management firm trusts such a move would prevent unfair advantages.

@Grayscale Investments calls for equal treatment and urges the @SECGov to approve all spot #BitcoinETF applications simultaneously, according to a statement made to the agency on Thursday.#BitcoinETF #SEC #EqualTreatment pic.twitter.com/p9wMVpZNxE

— DeFi Planet (@PlanetDefi) July 28, 2023

The statement indicated that authorizing only listed applications (BlackRock, VanEck, Ark 21 Shares, Fidelity, WisdomTree, and Invesco Galaxy) would be positive but reflect a sudden and substantial shift in how the regulator applies statutory standards. That would lead to an unfair advantage for the Bitcoin ETF proposals.

Possibility of SEC approving spot ETF applications

Also, the statement indicates that the surveillance-sharing plan with cryptocurrency exchange Coinbase may see the applicants failing to meet the securities’ watchdog requirements. The SEC sued Coinbase for law violations in June (read more).

Meanwhile, Grayscale continues its legal fight to convert its GBTC into ETF. Though the SEC has approved several futures-based BTC ETFs, it previously rejected the filing to convert Grayscale Bitcoin Trust into an exchange-traded fund.

Grayscale manages GBTC, the world’s leading Bitcoin fund, allowing institutions to interact with the dominant digital asset without holding the crypto. GBTC has been on a substantial discount against the underlying Bitcoin value.

However, BlackRock helped narrow the difference following its spot BTC ETF application. The crypto market gained momentum last month after leading institutions renewed their exchange-traded fund filings.

Grayscale requested the regulator to ensure order and fairness if it ditches simultaneous spot Bitcoin ETF approval.