The American Grayscale, the largest provider of crypto funds in the world, has reportedly pulled out heavy guns to Securities and Exchange Commission (SEC) to convince a bitcoin (BTC) mockery ETF to approve. Grayscale has hired a former Solicitor General, Donald Verrilli, who has been tasked with “combating” the SEC.
As we enter the final month before a response is due on our application to convert $GBTC to an ETF, we have retained Donald B. Verrilli, Jr., former Solicitor General of the United States, as additional legal counsel. A short on why:
— Grayscale (@Grayscale) June 7, 2022
Grayscale Bitcoin Spot ETF
Grayscale has long awaited a response from the SEC to their application to replace the existing Grayscale Bitcoin Trust (GBTC) fund to a bitcoin mockery ETF. Grayscale submitted this application in October of last year, but as yet there has been no response from the American regulator.
Several times, the SEC has also postponed a ruling on Grayscale’s filing. Each time, it was argued that more time and information was needed before the SEC could confidently approve or disapprove the bitcoin exchange fund.
Jake Chervinsky, it head of policy at the Blockchain Association, stated that adopting Verrilli is a big step for Grayscale. Chervinsky states that it clearly shows that Grayscale is doing everything it can to get their bitcoin spot ETF approved as quickly as possible.
strong move. @Grayscale means business.
The SEC’s deadline to approve or deny the application to convert GBTC to an ETF is July 6. No doubt, it should be approved. I don’t see how the SEC survives a legal challenge if not, especially one led by Don Verrilli.
Mark your calendar. https://t.co/ZbZ7oTXhHR
— Jake Chervinsky (@jchervinsky) June 7, 2022
Grayscale described Verrilli as one of the country’s most experienced lawyers with “a deep understanding of the legal theory, administrative procedure, and practicalities of working with the judiciary branch”.
“We are delighted to have him join our team as we work towards a positive solution for investors and the general public.”
Is a Bitcoin Spot ETF the Holy Grail?
Earlier this year, Grayscale CEO Michael Sonnenshein indicated that the company is willing to take legal action against the SEC if their ETF application is rejected. But why is it so important to Grayscale that their bitcoin spot ETF will soon be given the green light?
This has everything to do with the reach of a bitcoin spot ETF. Such exchange funds will offer any investor in the stock market the opportunity to gain direct exposure to bitcoin through a simple investment product. Analysts therefore propose also that bitcoin spot ETFs will be the “holy grail” of institutional adoption.