Grayscale launches campaign asking U.S. investors to comment on its Bitcoin ETF application

Crypto asset management giant Grayscale has invited American investors to submit comments to the United States Securities and Exchange Commission (SEC), which has reportedly delayed the company’s application for a Bitcoin spot exchange-traded fund (ETF).

On Tuesday, Michael Sonnenshein, the CEO of Grayscale, said that the company has launched an advocacy campaign for U.S. investors to express their thoughts to the SEC before it takes any final decision on its BTC investment vehicle.

Notably, Grayscale would have the first publicly listed Bitcoin spot ETF in the U.S. if it gets approval from the SEC. 

Grayscale waiting for SEC’s approval

The commission has delayed its decision twice since the NYSE Arca filed with the regulatory body on October 19 to list shares of Grayscale’s BTC ETF under the ticker GBTC. The first was on December 15, and the second was on February 4, as we reported.

Sonnenshein said that the program aims to “educate and inspire the investment community to take action and make their voices heard on this historic decision.”

Today @Grayscale announced the launch of a new public campaign to encourage American investors to submit comments on our application with the SEC to convert $GBTC to a Spot Bitcoin ETF.

— Sonnenshein (@Sonnenshein) February 22, 2022

Interestingly, the company has already received over 200 letters in support of SEC allowing Grayscale to convert its BTC trust into chief legal officer physically-backed ETF, said its chief legal officer Craig Salm.

I have now read through all 200+! comment letters (yes all of them) submitted on behalf of $GBTC conversion into a spot #bitcoin #ETF

Some common themes across submissions:

— Craig Salm (@CraigSalm) February 22, 2022

Salm said that people are calling the SEC actions “nonsensical” to approve Bitcoin futures ETFs but not BTC spot ETFs.

SEC’s continuous disapproval this year

The SEC has yet to approve any investment vehicle with direct exposure to bitcoin. The SEC authorized ProShares’ Bitcoin Strategy ETF for listing on the New York Stock Exchange (NYSE) and shares of crypto-asset management Valkyrie’s BTC ETF fund for listing on the Nasdaq Stock Market in October, prompting Grayscale to file an application to convert its Bitcoin Trust into an ETF.

The regulator has already turned down applications from Fidelity’s Wise Origin Bitcoin Trust and First Trust SkyBridge Bitcoin ETF Trust this year, but it is likely to make a decision in March on NYDIG’s spot Bitcoin ETF and asset management company Stone Ridge Holdings Group’s BTC ETF.