Grayscale, a digital asset platform that provides access to retail investors, has posted a letter in advance of the SEC’s 240 day deadline to respond to its request to migrate Grayscale Bitcoin Trust (GBTC) to an exchange-traded fund (ETF). The letter is signed by Michael Sonnenshein, CEO of Grayscale.
GBTC is solely and passively invested in Bitcoin and currently reports $13.3 billion in assets under management. GBTC is traded on OTC Markets and is one of the most active assets on the marketplace. While the past 12 months have not been so good for GBTC, like just about all crypto, since inception returns have been strong.
Sonnenshein outlines the effort that has been placed into receiving SEC approval for its ETF – an event that is expected to boost retail interest in the worlds most popular crypto. Apparently, outreach efforts have helped to encourage “over 11,400 investors, academics, business leaders, trade associations, and other key stakeholders” to submit comments in support of Grayscale’s application.
While remaining optimistic Sonnenshein shares they have been preparing in case of a negative ruling:
“We are also exploring options should the SEC not allow GBTC to convert to an ETF. Our legal team, including in-house counsel and our attorneys at Davis Polk, have articulated thoughtful, comprehensive arguments in support of GBTC’s conversion to an ETF. Most recently, we retained one of the country’s premier advocates, former U.S. Solicitor General Donald B. Verrilli, Jr., as a senior legal strategist. We have created the strongest possible legal team to help us articulate the importance of this issue.”
Sonnenshein says they have left no stone unturned in their efforts to migrate to an ETF.
While one Commissioner has been supportive of the concept of a Bitcoin ETF, the Gensler regime at the SEC has been decidedly negative when it comes to crypto. One aspect of interest is the fact that Gensler has admitted that Bitcoin is not a security but a commodity and this may provide a sufficient impetus to push it across the ETF line.
A public announcement on the decision is expected early next month (July).