In a statement to the U.S. Securities and Exchange Commission (SEC) on Thursday, Grayscale Investments called for equal treatment of all applicants, proposing that if the SEC approves any spot bitcoin exchange-traded fund (ETF) applications, it should do so for all simultaneously.
Grayscale highlighted that approving only the listed proposals, including Ark 21 Shares, Invesco Galaxy, iShares (BlackRock), Valkyrie, VanEck, WisdomTree, and Wise Origin (Fidelity), could create an unfair first-mover advantage.
The company suggested that these applicants’ surveillance-sharing agreements with crypto exchange Coinbase might not meet the SEC’s requirements. Grayscale believes agreements with venues lacking comprehensive regulatory oversight do not satisfy the relevant statutory standard.
The SEC had previously rejected Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, though it has approved several futures-based bitcoin ETFs. Grayscale had filed a lawsuit against the SEC last year after the conversion was denied. Grayscale, a subsidiary of Digital Currency Group, manages the world’s largest bitcoin fund, GBTC, which offers institutional investors exposure to bitcoin without direct asset holdings.
Recently, there has been a surge in Bitcoin spot ETF applications from prominent institutions like BlackRock and VanEck. Grayscale emphasised that approving spot bitcoin ETFs should promote investor protection and fairness for issuers, including those previously disapproved after lengthy consideration.
Should the SEC decide to approve any spot bitcoin ETF applications, Grayscale urged for a fair and orderly process.
