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Digital asset management company Grayscale announced overwhelming support in public comments for its bid to launch a spot bitcoin ETF.
In a letter to investors, Grayscale noted that of the 11,400 emails received by the SEC regarding their BTC product, 99.96% expressed support for the company. According to Grayscale, approximately 33% of emails ask a question about the lack of a spot bitcoin ETF in the US, given the SEC’s approval of bitcoin futures ETFs.
“The SEC’s actions for 8 months signal a growing recognition of the maturity of the underlying bitcoin market. The approval of every BTC-related investment product reinforces our arguments in favor of the need to launch a spot bitcoin ETF, “said Grayscale CEO Michael Sonnenshine.
At the moment, the regulator is considering grayscale’s application, as a result of which bitcoin trust shares (GBTC) should be converted into a fund with physical collateral, which, if approved, will be the first proposal of a spot bitcoin ETF in the United States. The completion of the 240-day review period, which began in November 2021 and will end on July 6, is nearing completion.
However, many industry experts suggest that approval of a spot bitcoin ETF is still unlikely. The SEC rejected similar applications from NYDIG and Global X back in March, and from One River Digital in May.
“In my opinion, the chances that GBTC will be allowed to convert to ETFs next week are 0.5%,” said Bloomberg ETF analyst Eric Balciunas.
It’s not entirely clear what Grayscale will do if the SEC rejects the application. Earlier, the company said that it will make every effort to convert its BTC trust into an ETF.
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