Grayscale has renewed a months-long push to persuade the Securities and Exchange Commission to approve converting the crypto investment firm’s $40 billion Bitcoin Trust into an exchange-traded fund (ETF).
ETFs bundle securities like stocks or commodities, and allow investors to buy shares of these bundles without owning the assets directly. There are two main types of BitcoinBitcoin ETFs: Bitcoin futures (derivative contracts that speculate on the price of the cryptocurrency), and Bitcoin spots (which operate on Bitcoin’s current price).
Grayscale is seeking to create the latter, a Bitcoin spot ETF. It would be the first of its kind: Though the SEC has thus far approved four Bitcoin futures ETFs, it hasn't approved a single Bitcoin spot ETF. (Neither Grayscale nor the SEC immediately responded to requests for comment from Decrypt. Grayscale did provide a copy of its letter on Monday.)
Crypto investment firm Grayscale has been working for the better part of a year to convert its Grayscale Bitcoin Trust—which has over $28.5 billion in assets under management—into a Bitcoin exchange-traded fund, or ETF.
Standing in its way, however, is the U.S. Securities and Exchange Commission (SEC), which has yet to approve any crypto-backed spot ETF for American investors.
With the agency set to make a decision by July 6, CEO Michael Sonnenshein would consider suing the agency if the applica...
Grayscale’s attorneys argued the point that the first three Bitcoin futures ETFs were approved by the SEC under the Investment Company Act of 1940. The Teucrium ETF, however, was approved under the Securities Act of 1933—a first. The SEC had previously stated that the 1940 act offered certain investor protections not covered by the 1933 act. The implication is that because Bitcoin spot ETFs couldn't be filed via the 1940 act, they offered insufficient investor protection.
Grayscale’s attorneys jumped on Teucrium’s approval via the 1933 act: “We believe the Teucrium order confirms the fundamental point ... [that] when it comes to approving [exchange traded products], there is no basis for treating spot bitcoin products differently from bitcoin futures products.”
The SEC likely will decide on Grayscale’s ETF application by July. Just weeks ago, Grayscale CEO Michael Sonnenshein stated he’d consider suing the SEC if the bid is rejected. Just after the Teucrium decision was released, Sonnenshein tweeted that when it comes to the alleged difference between Bitcoin futures ETFs and Bitcoin spot ETFS, the SEC “can no longer justifiably cite the ’40 act as being the differentiating factor.”
Therefore, if the SEC is comfortable with a #Bitcoin futures #ETF, they must also be comfortable with a spot Bitcoin ETF. And they can no longer justifiably cite the ‘40 Act as being the differentiating factor.
Bitcoin stayed flat after the Bureau of Labor Statistics May nonfarm payrolls report showed a steady jobs market in May—an encouraging sign that the economy may be stabilizing.
Economists had forecast that the U.S. would add 125,000 jobs in May, according to Dow Jones. But this morning's Bureau of Labor Statistics report shows that employers hired 139,000 works last month.
Bitcoin peaked above $105,000 earlier today, but has fallen 1.5% in the past 24 hours and is currently changing hands for $1...
The creator of the Bored Ape Yacht Club wants to take control of ApeCoin, after years of distancing itself from the Ethereum token created for its ecosystem.
In a new ApeCoin Improvement Proposal idea, Yuga Labs CEO and co-founder Greg Solano (aka Garga) outlined potential plans to disband the ApeCoin DAO, eliminating all governance rights for APE token holders in the process.
The idea, which started gaining attention on social media earlier this week, would transition all assets and responsibil...
A new dad coached his wife through the birth of their first child on Tuesday, a baby girl they named Solana—all while joined by a group of crypto degens on the livestreaming meme coin launchpad Pump.fun, who were there, naturally, to trade the token commemorating the event.
“PUUUUUSHHHH,” traders of the PREGOWIFE token spammed the chat while the woman was hours into labor. Those watching the stream could only see the ceiling of the hospital room at the time but could hear everything. Viewers tol...
