SEC delays Bitcoin ETF again. The United States Securities and Exchange Commission (SEC) has delayed its decision on whether to allow Grayscale’s application for a Bitcoin exchange-traded fund (ETF), citing familiar concerns over manipulation, liquidity, and transparency.
In a press release published Friday afternoon, the SEC expressed doubts about how Grayscale Bitcoin Trust (GBTC) would be converted into a spot ETF. Specifically, the regulator was unimpressed by Grayscale’s plan to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF. The SEC has given interested parties 21 days to respond in writing, requesting that they do so in writing.
The SEC has just delayed their decision on whether GBTC can convert to a bitcoin ETF.
— Pomp ? (@APompliano) February 4, 2022
SEC delays Bitcoin ETF
In October, Grayscale’s initial application to convert GBTC into a spot Bitcoin ETF was submitted to the SEC. The securities regulator delayed its decision on Grayscale’s request and a similar proposal put forward by Bitwise less than two months later.
Grayscale is the world’s largest digital asset management firm, having $36.5 billion in assets under management as of February 4th. Over 71% of Grayscale’s total assets are held in its GBTC product.
02/04/22 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $36.5 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $ADA $SOL $AMP pic.twitter.com/1IqNGLX3QP
— Grayscale (@Grayscale) February 4, 2022
While the SEC has been hesitant to approve a Bitcoin ETF, it has been more receptive to a futures-linked product. The ProShares Bitcoin Strategy ETF became the first Bitcoin futures fund to be approved in the United States in October. Shortly after, the SEC gave approval for two bitcoin-linked Strategy ETFs from Valkyrie and VanEck.
