Recent developments in Bitcoin, such as the Bitcoin Ordinals and BRC20 standard for tokens, have revitalized its dominance. Bitcoin ETFs are another aspect of blockchain technology that has been talked about for a while and is targeted at transforming how ETFs are issued.
Grayscale Investments is a digital currency asset management company founded in 2013 with over $39 billion in assets under management. It has a strong track record of innovation and growth and is well-positioned to lead the digital currency asset management industry.
The US Securities and Exchange Commission (SEC) rejected Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) in June 2022.
The rejection of Grayscale’s application for a spot Bitcoin ETF is a setback for institutional investors who have been waiting to invest in the cryptocurrency through an approved ETF. Later that year, Grayscale appealed the SEC’s decision. However, the SEC has yet to agree or approve the proposal to date.
SEC approved other ETFs
Meanwhile, the SEC has approved Bitcoin EFT proposals by other firms in the industry while rejecting others, including FMR LLC’s Fidelity, SkyBridge Capital, Valkyrie Investments, WisdomTree, and Ark21Shares.
According to the SEC, the decision is based on the fact that the approved Bitcoin ETFs are futures-based while those rejected, including that of Grayscale, are spot-based ETFs. The regulatory authority cited the lack of anti-fraud structures as a reason behind its stand.
Grayscale’s CEO believes that the decision by the SEC will be changed by the close of Q3 2023, allowing the firm to release its Bitcoin ETF product. “We’re eagerly anticipating a decision from the courts between now and then,” he said. He added that he is willing to work alongside the SEC to make it happen.
In closing, he hinted that it is the technologies, and diverse useful use cases, not the prices of digital assets, that are the best clues for how healthy the industry is and the bait for attracting investors.