- Grayscale Investments has launched a campaign encouraging American investors to push the SEC into approving a spot Bitcoin ETF
- The campaign involves US investors, submitting comments on Grayscale’s application with the SEC for a spot Bitcoin ETF
- Grayscale plans to convert its Bitcoin Trust to a spot Bitcoin ETF
- The move would benefit investors by offering exposure to Bitcoin as well as lowering the discount price on the GBTC
The Wall Street investment firm of Grayscale has launched a campaign encouraging American investors to push the Securities and Exchange Commission into approving a spot Bitcoin ETF.
Key to the campaign by Grayscale is the submission of comments by U.S. investors on its application with the SEC to convert its Grayscale Bitcoin Trust, into a spot Bitcoin ETF.
Grayscale’s CEO, Michael Sonnenshein, further explained that investors in the United States, have a unique opportunity to communicate directly with the SEC with regards to the spot Bitcoin ETF. He explained:
WE WILL…ENSURE THAT THE INVESTING PUBLIC IS AWARE OF THE UNIQUE OPPORTUNITY THEY HAVE TO VOICE THEIR OPINIONS DIRECTLY TO THE SEC – A CRITICAL PART OF OUR EXISTING REGULATORY PROCESS.
THE HUNDREDS OF COMMENTS ALREADY SUBMITTED ON BEHALF OF GBTC’S CONVERSION TO AN ETF FURTHER DEMONSTRATES THAT THIS ISSUE IS OF THE UTMOST IMPORTANCE TO INVESTORS.
IT IS CLEAR WE HAVE REACHED A TIPPING POINT IN THE ADOPTION OF DIGITAL ASSETS. MAINTAINING THE REGULATORY STATUS QUO MAY FEEL LIKE THE SAFE OPTION, BUT THE REALITY IS THAT FAILING TO KEEP PACE WITH CHANGE IS THE FAR RISKIER PATH FOR MAIN STREET INVESTORS AND OUR COUNTRY.
How To Submit Comments to the SEC Regarding the Spot Bitcoin ETF Application by Grayscale
Citizens and residents of the United States who are interested in participating in the process can submit their comments to the SEC as follows.
- Send an email to [email protected]
- “File No. SR-NYSEArca-2021-90” has to be included in the subject line of the email
- Explain in the email body, why the SEC should consider the conversion of the Grayscale Bitcoin Trust to a spot ETF
Conversion of the Grayscale Bitcoin Trust Will Close the Discount on GBTC
One benefit of converting the Grayscale Bitcoin Trust into an ETF is that it will eliminate the current discount on the GBTC in relation to the underlying asset value.
At the time of writing, GBTC is trading at $27.33. Each GBTC share represents 0.0009288 BTC which is valued at $34.83 using Bitcoin’s current value of $37,500.
Doing the math, GBTC is trading at a 21.53% discount when compared to the value of the underlying asset.