Once again the United States Securities and Exchange Commission (SEC) has delayed its decision concerning Greyscale’s application for a Bitcoin exchange-traded fund (ETF) citing concerns around manipulation, liquidity and transparency. Last year, an application was submitted and the SEC eventually postponed its ruling to February 6th.
The SEC has been going back and forth in its decision to approve a spot Bitcoin ETF but it however approved the ProShares Bitcoin Strategy ETF in October, becoming the first Bitcoin futures fund to be approved in the United States. Not too long after it approved the ProShares Strategy ETF fund, it approved a pair of Bitcoin-linked Strategy ETFs from Valkyrie and VanEck.
Greyscale Bitcoin Trust which is the world’s largest digital currency manager turned in a proposal to the US SEC last year. Greyscale in its proposal revealed plans to convert its Greyscale Bitcoin Trust into a spot Bitcoin ETF.
On Friday afternoon, in a notice published, the SEC expressed concerns about how Greyscale intends to convert its Greyscale Bitcoin Trust (GBTC) into a spot ETF. The regulator seemed unsure that the digital asset manager’s proposal was designed to combat fraud and manipulation in the Bitcoin market. The regulator has opened the floor to the public, inviting them to share their opinions on the Greyscale matter. Interested parties were given a 21-day window to respond in writing by the regulator.
As per Investopedia, An ETF is an investment vehicle that tracks the performance of a particular asset or group of assets. ETFs allow investors to diversify their investments without actually owning the assets themselves. For individuals looking to focus only on gains and losses, ETFs provide a simpler alternative to buying and selling individual assets. And because many traditional ETFs target larger baskets of names with something in common—a focus on sustainability, for instance, or stocks representing the video game industry and related businesses—they allow investors to easily diversify their holdings.