Grayscale urges the SEC to not pick "winners and losers" in a rally from spot Bitcoin ETF.
Grayscale, a major player in the world of crypto asset management, is pushing for the US Securities and Exchange Commission (SEC) to give the nod to all awaiting spot Bitcoin (BTC) exchange-traded funds (ETFs) at once, promoting fair competition.
On July 27th, Grayscale's Chief Legal Officer, Craig Salm, disclosed that the firm submitted a comprehensive letter to the SEC concerning eight distinct spot Bitcoin ETF filings.
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The written appeal urges the SEC not to pick "winners or losers" between applicants but to make balanced and systematic decisions.
In the letter, Grayscale suggested that the SEC could greenlight the spot ETFs by considering previous approvals given to Bitcoin futures ETFs. They noted that both these ETF categories share a common ground.
Moreover, the firm voiced reservations about recent surveillance sharing agreements (SSAs) between Coinbase and other spot ETF contenders. While SSAs aren't a new development, Grayscale doubted their ability to meet the SEC's rigorous standards.
Several investment giants, including Invesco, BlackRock, Valkyrie, VanEck, Wisdom, Fidelity, and ARK Invest, have edited their ETF filings to incorporate SSAs with Coinbase.
Earlier, the SEC had indicated concerns regarding the lack of SSAs in the ETF filings, citing the possibility of manipulation in the crypto market.
Contrarily, Grayscale argues that these SSAs might not be necessary or even adequate under the SEC's standards, considering Coinbase isn't recognized by the SEC as a securities exchange or broker-dealer, nor by the Commodity Futures Trading Commission as a futures exchange.
Last June, the SEC dismissed Grayscale's application to morph the GBTC into a spot Bitcoin ETF, leading to Grayscale's lawsuit against the regulator. The firm claimed that the SEC was acting inconsistently when it came to similar investment entities.
Grayscale's plea to the SEC displays its commitment to advocate for fairness in the digital asset market. As the firm continues its battle for simultaneous approval of all upcoming Bitcoin ETFs, the crypto community at large is eagerly anticipating the SEC's future decisions and their impact on the cryptocurrency investment arena.
