The U.S. Securities and Exchange Commission (SEC) is back to business as usual when dealing with exchange traded funds (ETFs). While the applicants may vary, the reasons remain the same. Interestingly, the regulator has once again deferred judgment on Grayscale's pending application for a bitcoin (spot) ETF. Oddly enough, the regulator expressed a familiar reason for doing so.

The same old love

The SEC has just delayed their decision on whether GBTC can be converted into a Bitcoin ETF.

– Pomp 🌪 (@APommpliano) February 4, 2022

In a 10-page notice, the SEC raised some concerns about the digital asset manager's motives for converting its Grayscale Bitcoin Trust (GBTC) into a spot ETF. It calls for "written comments" from "interested persons" in the public to present their "views, data and arguments. Thus, depicting previous concerns about market fraud, manipulation and overall lack of transparency. The regulator gave both sides 21 days to express the same views.

In fact, the SEC further added that "any person wishing to file a rebuttal to any other person's submission must do so within 35 days.

Individuals interested in submitting comments to the SEC may do so electronically or in paper form. Also, those who wish to submit comments electronically are asked to use the SEC's "Internet Comment Form" or send an email to [email protected] with the subject line "File No. SR-NYSEArca-2021-90 ".

A shaky past

Since filing last October, Grayscale has not had a good start. Unfortunately, two months later, the SEC announced that it would delay its decision on Grayscale's application. Well, illustrating the same "risk" issue.

Grayscale is the world's largest digital asset manager. At the time of writing, it has $36.5 billion in assets under management (AUM).

Updated 4/2/22: Net assets under management, holdings per share and market price per share for our investment products.


That said, the SEC prefers future-linked ETFs to spot bitcoin ETFs. In October, the ProShares Bitcoin Strategy ETF became the first bitcoin futures fund to be approved in the US.