- At least three applications for a Bitcoin spot ETF have been denied by the SEC.
- On February 1, the SEC issued a public comment period on the matter.
The SEC claims to have received around 200 letters on whether or not to approve the application. According to the regulators’ estimates, in February, the majority of these letters were received. As of October 2021, Grayscale, the world’s biggest Bitcoin fund, has sought to convert its Bitcoin Trust into a Spot ETF.
Several Bitcoin futures ETF are authorized, but the regulator has been far more cautious about the Spot ETF. At least three applications for a Bitcoin spot ETF have been denied by the SEC. However, the Grayscale application has yet to be decided upon.
Increased Awareness of the Issue
Regulators claim that the decision was made to safeguard investors and the general public. Investors, on the other hand, say they don’t feel safe. Over 198 letters have been sent to the regulator, the majority of which beg that the application be approved. In February, 184 of the letters came.
This month’s flurry of correspondence directly results from increased awareness of the issue, notably on social media. On February 1, the Securities and Exchange Commission (SEC) issued a public comment period on the matter. Moreover, Grayscale requested that investors offer their thoughts on the topic.
According to the Grayscale CEO, Michael Sonnenshein:
“a lot of the letters have been echoing what we at Grayscale have been articulating for quite some time and continue to do so today—that investors have been patient and deserve a spot Bitcoin ETF.”
Some of the letters advocate for a Bitcoin spot ETF, stating that it would help the crypto sector provide more regulated investing choices for the public. Many disagree, including those who are opposed to cryptocurrencies as a whole.
