• Grayscale Investments is urging the SEC to simultaneously approve all filed applications for a spot Bitcoin Exchange Traded Fund (ETF).
• The asset management firm believes that granting approval to all the applications at once will provide equal opportunities and show fairness.
• However, the SEC might not be pleased with Coinbase’s involvement as it is not registered as a securities exchange or broker-dealer with the commission.
Grayscale Urges SEC for Simultaneous Approval of Spot Bitcoin ETFs
Grayscale Investments has urged the Securities and Exchange Commission (SEC) to approve all filed applications for a spot Bitcoin Exchange Traded Fund (ETF) simultaneously in order to provide equal opportunities and show fairness.
Why Grayscale Favors Simultaneous Approval?
The asset management firm believes that simultaneously approving all 8 of the pending applications will ensure fair competition among other parties involved. Furthermore, it asked for approval of those “Trust whose Rule 19b-4 filings were previously disapproved after lengthy Commission consideration.” Additionally, Grayscale proposed that the regulator should approve BTC Futures ETFs in the same manner since they are “inextricably linked.”
Why SEC Might Not Be Pleased With Coinbase?
Many investment asset managers have adopted Surveillance Sharing Agreements (SSAs) with United States-based cryptocurrency exchange Coinbase in accordance with SEC regulations; however, Grayscale believes that this may not please the regulator due to Coinbase’s lack of registration as a securities exchange or broker-dealer with either the SEC or Commodity Futures Trading Commission (CFTC).
SEC Lawsuit Against Coinbase
In June 2020, when American regulator took legal action against Coinbase , it was revealed through court documents that digital asset service provider was operating without any official registration from regulatory authorities. This could be another reason why the addition of an SSA may not be well received by SEC officials.
Grayscale Investments is encouraging American regulator to grant simultaneous approval of all pending spot Bitcoin ETF applications in order to maintain fairness and order among other parties involved. However, due to its recent lawsuits against crypto firms such as Binance and Coinbase , there remains uncertainty whether or not regulators will favor these requests from Grayscale.