Grayscale Investments announced on Thursday that it is expanding its ETF team in anticipation of a decision in its litigation against the Securities and Exchange Commission (SEC).
As a result of BlackRock’s ETF registration, the price of Bitcoin soared in June. However, the approval faces a significant obstacle because the SEC has been sued for not approving ETFs. As anticipated, the SEC is issuing postponement orders for applications while awaiting the court’s decision.
Grayscale is confident about a BTC ETF approval
Grayscale tweeted, “Our ETF team is hiring,” accompanied by two eye emojis. LinkedIn indicates that the two positions, a product specialist and senior associate to assist its ETF team, were posted within the past week. The recently posted positions have collectively received more than fifty applications.
According to the job description, the senior associate at Grayscale would contribute to investment product development ideas and work with the ETF team to bring them to life.
According to the job description, the product specialist would work closely with the sales, operations, marketing, and product teams to optimize the investor experience, with an emphasis on ETFs.
As a result of the SEC’s refusal to convert the Grayscale Bitcoin Trust (CBTC) into a spot Bitcoin exchange-traded fund (ETF), Grayscale sued the U.S. financial regulator in June 2017. James Seyffart, a Bloomberg analyst, stated on Monday that a ruling in Grayscale’s lawsuit could come as early as this week.
Since 2013, the SEC has cited market manipulation concerns in every denial letter sent to Bitcoin ETF applicants. If Grayscale prevails in its lawsuit, the SEC could be forced to alter its position if a court determines that the agency’s reasons for denial are insufficient.
Converting GBTC into a spot Bitcoin ETF would enable the company to charge reduced management fees and eliminate the “discount” that causes GBTC shares to trade at a discount to the $18 billion in Bitcoin it holds. The discount results from the current structure of the fund, in which GBTC shares cannot be redeemed for Bitcoin.
Other companies, including Fidelity and ARK Investment Management, have also submitted applications. The SEC delayed its response to ARK’s spot Bitcoin ETF application last week, citing the need for additional time.
Cathie Wood, the chief executive officer of ARK, concurs with Grayscale’s viewpoint that the SEC will likely approve multiple applications simultaneously if it ever receives regulatory approval. Last week, Wood stated, “I think the SEC, if it’s going to approve a Bitcoin ETF, will approve more than one at once.”
Ether futures ETFs are poised for U.S. approval
Bloomberg reported on Thursday that U.S. securities regulators are poised to approve ether (ETH) futures exchange-traded funds for trading.
Several companies have submitted applications to list these exchange-traded funds, which would contain derivatives contracts tied to ether as opposed to ether itself. Bloomberg reported that the U.S. Securities and Exchange Commission’s approval could be forthcoming.
There are already Bitcoin futures ETFs that contain crypto derivatives. The industry eagerly awaits word on whether ETFs holding Bitcoin itself, as opposed to derivatives, will also be approved. Wall Street titans such as BlackRock are attempting to create these as well.
According to the Bloomberg report, it was not immediately possible to ascertain which funds would be approved. One of the individuals, who spoke on the condition of anonymity in order to discuss non-public information, said that officials have indicated that several might by October. As per the news outlet, the SEC was unwilling to comment.
The regulator has refused to approve an ETF based directly on a crypto coin, but it began authorizing trading in a fund involving Bitcoin futures contracts on the Chicago Mercantile Exchange in late 2021. Speculation has increased that a product based on Ether futures, which are also traded on CME, will be introduced next.
In the meantime, the SEC is still at odds with the industry over its opposition to Bitcoin-based ETFs. In a high-stakes case, a panel of US federal appellate court justices will rule on a lawsuit filed by Grayscale Investments LLC challenging the SEC’s denial of its application to convert its Bitcoin trust into an ETF.
