A Bitcoin exchange-traded fund hopeful is appealing to people power to cross the finish line with the Securities and Exchange Commission.
Grayscale Bitcoin Trust wants to convert to an ETF, which would make it the first pure Bitcoin ETF to gain approval, and CEO Michael Sonnenshein hopes to see strength in numbers.
He and his team launched an “advocacy” campaign, including a step by step guide on how to submit comments to the SEC on why the fund should be approved.
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“This campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,” Sonnenshein said in a statement.
It’s not just the hype – earlier this month, Grayscale’s global head of ETFs, David LaValle, said the company’s size and scope qualifies them to be the first approved ETF.
“Everyone has concepts at this point, we actually have a product in the market, we have over 600,000 investors in our flagship product, the Grayscale Bitcoin Trust, and so that absolutely matters, and we certainly want to be the first,” LaValle told FOX. Business. “We have hundreds of thousands of investors who have said they want this ETF, and we will certainly advocate on their behalf,” he added.
The comment period ends on July 6, 2022.
For investors who already own the current fund, GBTC, if approved, these changes would evolve.
To date, the SEC under Chairman Gary Gensler has rejected all Bitcoin ETF applications, in most cases citing the companies’ failure to ensure investor protection.
He explained the risk to investors in a recent FOX Business interview.
“Bitcoin futures, traded on the Chicago Mercantile Exchange…there has been a regulated market since 2017 by our sister agency, the Commodity Futures Trading Commission, an agency that I was once proud to chair, so you should know that I think very well of the CFTC. So it’s part of that framework, we don’t have that framework for the underlying cash market at the moment,” Gensler said.
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Instead, the commission has set up Bitcoin Futures ETFs and ETFs that offer exposure to Bitcoin and crypto-related companies, including ProShares Bitcoin Strategy ETF, WisdomTree’s Enhanced Commodity Strategy Fund, and Bitwise Crypto. Industry Innovators ETF.
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More recently, Fidelity became the latest company to get the SEC’s boost for its Bitcoin ETF app. At the time, in a statement to FOX Business Fidelity said:
“While we are disappointed with the outcome of the SEC’s deliberations that culminated in today’s disapproval order, we reaffirm our belief that the market is ready for a physical product traded in bitcoin and we look forward to the continuation of a constructive dialogue with the SEC.
“Fidelity’s extensive research into bitcoin trading in global spot and futures markets shows the maturation of these markets and the price discovery leadership of CME Bitcoin’s regulated futures market, which meets the standards of the SEC regarding listing approvals as applied to many existing cash-backed exchange products currently available for trading, including gold, silver, platinum, palladium and copper,” the company said.