News

170 letters seeking SEC approval to convert Grayscale’s GBTC into a spot bitcoin ETF

Grayscale, the world’s largest Bitcoin fund, has long sought to convert it into a spot Bitcoin ETF but was rejected by the United States Securities and Exchange Commission (SEC). Investors are now fighting back and have sent nearly 200 letters to the committee to support the fund’s transition.

Grayscale investors speak out

As Bloomberg reports, the SEC received more than 170 letters from Grayscale investors in February alone. This follows a public referendum by the regulator last week that asked people to give their thoughts on Grayscale’s recent application and potential Bitcoin ETFs that exist as a scam.

An exchange-traded fund (ETF) is simply a basket of securities (or cryptocurrency) that tracks an underlying index. The public is free to buy shares of these funds for access to a specific asset.

Many such products have popped up around the world to directly track the value of Bitcoin and Ethereum — but none have landed in the US yet. Currently, the SEC only licenses a handful of bitcoin futures ETFs, which are backed by futures contracts rather than the actual cryptocurrency.

Grayscale CEO Michael Sonnenshein reached out to investors and encouraged them to file a letter with the SEC regarding converting funds into an ETF. He said investors have shown a lot of support for the transition so far.

GBTC is under pressure

Grayscale Bitcoin Trust (GBTC) is currently a trust. In this format, stock prices cannot be traded to accurately reflect market sentiment. As a result, the fund’s shares have been discounted from the underlying Bitcoin price for almost a year.

Shares are down 17% since the start of 2022 — compared to Bitcoin’s 13% drop. On Thursday, the price closed 25% below its bitcoin holdings.

Investors can feel the pain. All of their letters to the SEC relate to the Commission’s refusal to allow a spot Bitcoin ETF.

An investor named Clay Craven wrote, “I don’t feel protected by the SEC. It is time the SEC approved the conversion of the GBTC ETF and stopped hurting investors and the country by forcing capital overseas where cash BTC ETFs are already traded and regulated by regulators.

Investor protection is a major concern, quoted by SEC Chairman Gary Gensler when expressing his preference for bitcoin futures ETFs over spot ETFs.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

1 second ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

2 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

3 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

This website uses cookies.