SEC again delays choice on Grayscale’s Bitcoin ETF

The US Securities and Alternate Rate (SEC) has once extra delayed its ruling on whether to approve Grayscale’s utility for a Bitcoin (BTC) exchange-traded fund (ETF), citing acquainted concerns round manipulation, liquidity and transparency. 

In a look printed Friday afternoon, the SEC expressed concerns about how the digital asset manager intends to remodel its Grayscale Bitcoin Belief (GBTC) steady into a predicament ETF. Namely, the regulator wasn’t contented that Grayscale’s proposal turned into once designed to smash alleged fraud and manipulation within the Bitcoin market. The SEC has invited the general public to touch upon these disorders, giving parties 21 days to acknowledge in writing.

The SEC has right delayed their choice on whether GBTC can convert to a bitcoin ETF.

— Pomp (@APompliano) February 4, 2022

As Cointelegraph reported, Grayscale’s preliminary utility to remodel shares of GBTC steady into a predicament Bitcoin ETF turned into once submitted to the SEC in October. Not up to 2 months later, the securities regulator announced that it turned into once postponing its choice on Grayscale’s utility and a equal proposal save forward by Bitwise.

Grayscale is the field’s excellent digital asset manager with $36.5 billion in belongings under administration as of Feb. 4. Its GBTC product accounts for over 71% of its total belongings. 

— Grayscale (@Grayscale) February 4, 2022

Linked: Canadian Bitcoin ETF sees its third-excellent day-to-day inflow ever

While the SEC has been hesitant to approve a predicament Bitcoin ETF, the regulator has been valuable extra receptive to a futures-linked product. In October, the ProShares Bitcoin Intention ETF grew to become the foremost Bitcoin futures fund to be accepted within the United States. Shortly thereafter, the SEC accepted a pair of Bitcoin-linked Intention ETFs from Valkyrie and VanEck.