US SEC Has Postponed Ruling On Grayscale’s BTC ETF Application
The US SEC (Securities and Exchange Commission) put back its decision over the awaiting application submitted on the behalf of Grayscale to transform the Bitcoin Trust thereof into a spot exchange-traded fund (ETF) because of the apprehensions regarding the transparency, liquidity, as well as manipulation. It is obvious that the Friday’s notice of the SEC did not provide anything other than the usual because it deals with the pending application of Grayscale.
A demand for written feedback
In its notice of nearly 10-pages, the Securities Department particularly demands written feedback from the concerned people out of the general public to provide with their viewpoints, information, as well as the arguments related to the former concerns of the regulator regarding a general deficiency in transparency, market swindling, as well as the market fraud.
The notice mentions that there are 21 days left for the public from today onwards to present the written data, arguments, and views on whether the application of Grayscale should be eliminated or approved, with a chance for rebuttal to any of the specific submissions to be carried out during coming 35 days.
The people having an interest in providing their comments to the Securities Department can submit them by paper or electronically. The other people, who wish to give comments electronically, can utilize the internet comment formation of the SEC or send them through email. The emailing persons should send several copies to the SEC’s Secretary. In recent October – the biggest manager of digital assets across the world – Grayscale, applied to transform the GBTC (Grayscale Bitcoin Trust) into a spot ETF of Bitcoin, expecting a shift in the SEC’s historical track record of discarding such applications.
The US regulator’s hardened stance
Unluckily, after two months, the SEC declared to postpone the decision thereof on the application of Grayscale, referring to the apprehensions related to transparency, manipulation, as well as market fraud to be the chief reasons for doing this.
According to its latest tweet, there is up to $36.5B in the under-management assets of Grayscale, and 71% out of the cumulative assets thereof is credited to the GBTC product. Moreover, at January’s end, the Securities Department discarded the Wise Origin Bitcoin Trust of Fidelity, only seven days following it had eliminated SkyBridge Capital and First Trust’s proposal for BTC exchange-traded fund.
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