Many people are taking interest in the decision of the US-based SEC (Securities and Exchange Commission) regarding the application of Grayscale for a spot ETF of Bitcoin, as per Bloomberg. The US-based SEC asserts having received nearly 200 letters inquiring whether the organization will approve the respective application. As per the regulator, a majority of the letters came in February.
The overflow of letters for Grayscale spot ETF
Grayscale, the biggest fund for the primary crypto token (Bitcoin) across the world, filed to transfer the Bitcoin Trust thereof into a kind of Spot ETF (exchange-traded fund) in 2021’s October.
Though the regulatory agency has provided a green signal for the futures-based ETF of Bitcoin, it holds a considerably fundamental stance in the case of Spot ETFs. The organization has discarded nearly three applications representing spot ETFs of Bitcoin. Nonetheless, it has not decided on the application of Grayscale.
As per the regulators, the Securities Agency aimed to shield the investors as well as public interest. Nonetheless, the investors have asserted to be feeling no protection. Presently, more than 198 letters have been delivered to the regulator with a large number of them requesting to accept the application.
Almost 184 of the respective letters were received during February. The arrival of the letters in the current month is a result of the transformed publicity over the subject, particularly on the platforms of social media. On 1st February, public comments were invited by the SEC on the matter. The investors were also persuaded by Grayscale to provide their opinions.
The proposition of the letters
A few among the letters are in the support of a spot ETF of Bitcoin, stating that it will elevate the industry of cryptocurrency along with ensuring the options for additionally regulated investment. However, some of the letters differ in opinion and even disapprove of the general concept of cryptocurrency. Clay Craven, a GBTC investor, noted that he does not feel being shielded on the behalf of the SEC.
In the words of the investor, the regulator should stop wasting time and offer a green light over the GBTC ETF transformation rather than causing harm to the country as well as the investors by paving the way for the capital to the other nations where the successful trading of Bitcoin-based Spot ETFs is being carried out after the approval from the regulators.