SEC Has Pushed Back On Grayscale’s Highly Anticipated Bitcoin Trust (GBTC)
The US Securities and Exchange Commission (SEC) has continued to stall the approval of a Bitcoin spot exchange-traded fund (ETF). The SEC stated that it was delaying a decision on whether the biggest Bitcoin fund, Grayscale Bitcoin Trust (GBTC) can convert into a Bitcoin spot ETF. The securities regulator noted that Grayscale’s application failed to satisfy its concerns about manipulation, liquidity, and transparency in the Bitcoin market.
US SEC delays decision on Greyscales spot Bitcoin ETF application
While the SEC and Ripple continue to battle it out in court, the Organization is also tackling ETF related issues on a daily basis. In a recent notice published by the US Securities and Exchange Commission (SEC) has again delayed its ruling on whether digital asset manager Greyscale can convert its Bitcoin fund to a spot-settled ETF.
The SEC’s notice called for comments from the public on whether it should allow the ETF or not, highlighting that the commission was still uncertain about approving the proposal.
- The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act21 to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change, the notice stated.
Like its other Bitcoin spot ETF application communiqués, the SEC stated that it remains concerned about several aspects of the Bitcoin market and the implications they can have on consumer protection. The regulator stated that the application had failed to sufficiently address concerns about preventing “fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
This is the second time the SEC has delayed its decision on Greyscale’s proposal since it was filed last October. Grayscale is currently the biggest digital assets manager globally with over $36.5 billion in assets under management (AUM). Grayscale Bitcoin Trust (GBTC), is its biggest product, worth over $26 billion going by a recent update from the firm.
The SEC’s growing list of Bitcoin spot ETF rejections
The crypto market has continuously been disappointed by the SEC when Bitcoin spot ETFs are concerned. While the SEC has so far approved three Bitcoin futures backed ETFs, the list of Bitcoin spot ETF applications it has been delaying or rejecting only keeps increasing. This year, the SEC has delayed its decision on Bitwise and NYDIG’s Bitcoin spot ETF applications. It has also rejected applications from SkyBridge Capital and Fidelity.