The great Grayscale asks the US Securities and Exchange Commission (SEC) to approve all applications for a Spot Bitcoin ETF at the same time so that no one party has a huge advantage over the rest. In a letter to regulators, Grayscale writes that the SEC should not pick “winners and losers” and make a fair decision.
On that note, it seems that Grayscale is concerned that a party like BlackRock will take the throne.
Positive about Bitcoin ETF
That’s not all Grayscale’s legal team writes in the letter to the SEC. They further claim that the SEC can approve the Spot Bitcoin ETFs based on the previous approvals of Bitcoin Futures ETFs. According to Grayscale, these two types of funds are “inseparable” from each other.
In addition, it adds that the recent data-sharing agreements between Coinbase and potential ETF providers are “not a new idea” and claim that these agreements do not meet SEC standards.
The applications from Invesco, BlackRock, Valkyrie, VanEck, Wisom, Fidelity, and ARK Invest all currently contain those same agreements with Coinbase. The US exchange platform would then share data about its order books and other information so that the SEC can keep an eye on market manipulation.
Why might this be relevant for a Bitcoin ETF?
This could theoretically persuade the SEC to approve a Spot Bitcoin ETF, as they have claimed in the past that it is too easy to manipulate Bitcoin’s price.
However, according to Grayscale, the current data agreements do not meet SEC standards and are also unnecessary.
Namely, Coinbase is not registered with the SEC as a stock exchange, nor is it on the Commodity Futures Trading Commission (CFTC) registers as a futures exchange.
The SEC’s approval would be a “positive but sudden significant change” in the application of the financial regulator’s standard, according to Grayscale.
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