The U.S. Securities and Exchange Commission (SEC) said in a statement today. of grayscale A spotlight of the Grayscale Bitcoin Trust bitcoin announced that it is postponing its decision on its application to convert to its ETF.
The SEC has acquired the Grayscale Bitcoin Trust (GBTC) from the firm. bitcoin asked him to clarify how he would address stock manipulation, fraud and other potential issues in his application to convert to a spot ETF.
Expressing concerns about the liquidity and transparency of the Grayscale Bitcoin Trust, the SEC also asked Grayscale for more details on the “suitability” of Bitcoin as the underlying asset for the spot ETF.
Grayscale’s ETF Application!
Grayscale, the world’s largest digital currency manager, filed an application with the SEC in October last year to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF.
Grayscale applied immediately after the SEC approved the ProShares Bitcoin futures ETF.
The SEC again delayed Grayscale’s application in December.
Grayscale has 21 days to respond to the SEC’s concerns.
SEC’s Reason for ETF Rejection!
In previous rejections, the SEC cites that ETF applications do not meet the principles of “preventing fraudulent and manipulative acts and practices, investor protections, and the public interest.”
The SEC states that it has rejected spot Bitcoin ETF applications due to lack of investor protection.
The SEC, which has not yet approved a spot Bitcoin ETF, has approved a Bitcoin Futures ETF in 2021.
*Not investment advice.