Grayscale is again urging the SEC approval to become Bitcoin ETF

Grayscale has made a new attempt to obtain the approval of the US Waterpaper supervisory authority in order to convert the world's largest crypto Investment vehicle into a fund that is traded on the large stock exchanges of Wall Street.

The asset manager has focused on a legal detail in order to convert his application to the Securities and Exchange Commission to convert his 40 billion-dollar-bitcoin trust into a stock market-traded fund.

The Grayscale maneuver comes, while the SEC thinks about whether stock exchange-traded US funds should give green light for the first time to keep Bitcoin instead of derivatives that are connected to the cryptocurrency. The regulatory authority has announced that it will decide on Grayscale's application at the beginning of July.

Several competitors have already been prepared in their attempts to open similar funds, and Grayscale's gambit is one of the last hopes of the crypto industry to launch such a product in the near future. Only three other similar crypto ETFs are in the queue for approval.

The SEC has resisted so-called spot crypto ETFs because it fears that the coins are traded on unregulated platforms on which surveillance is difficult and manipulation is a constant problem. It has approved ETFs that hold crypto futures, but these products are traded on platforms that are supervised by US finance supervisory authorities.

Grayscale rely on the acceptance of the Teucrium Futures cryptov hikel by the SEC at the beginning of this month according to the rules that would regulate spot-bitcoin ETFs to underpin their arguments towards the regulatory authority.

In a letter that was sent to the SEC this week, Grayscale said: "We believe that the Teucrium orders confirmed the basic point.

Craig Salm, Chief Legal Officer from Grayscale, added that after the Teucrium approval "effectively losing the ability to differentiate between the rules for Futures ETFs and Spot ETFs as a reason for the rejection of funds that are connected to physical bitcoins.

The Sec rejected a statement.

Some compliance experts remain skeptical whether the new legal move by Grayscale will pay off.

SEC boss Gary Gensler has argued that "largely unregulated" Bitcoin markets raise concerns about fraud and manipulation. He has also asked cryptoplate forms to register with the agency and argues that most token are securities and fall into the area of ​​responsibility of the Sec.

Amy Lynch, founder and President of Frontline Compliance, a regulatory consulting company, said that the approval of spot bitcoin ETFs will remain difficult until the pricing, evaluation and liquidity of the funds are standardized and more transparent.

"Gensler would have to change his position at this point," added Lynch. "I don't see that he does, unless there is an aha moment with these files that answers all questions. And I think that's a little probability."

However,

crypto players argue that the development of the Bitcoin market should dispel these concerns in recent years.

"The markets themselves have become much more robust since the first wave of ETFs was rejected in 2017," said Salm, adding that the crypta organizations have increased protection through increased trade monitoring and the use of technologies that are similar to those of national US investment exchanges.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management-which has submitted one of the outstanding applications for a fund with Bitcoin-said that the maturation of the regulated CME spot bitcoin market is "the most important factor", the broader crypto ecosystem improved thanks to the introduction of regulated ETFs Institutional actors.

Timothy Spangler, partner at Dechert, said it was unclear what other information the SEC would need for the approval of Spot-Bitcoin ETFs if other supervisory authorities such as in Australia and Canada had approved these products.

These countries "seem to be able to make friends with the idea that" Bitcoin is a asset that is mature enough to be accepted into a publicly traded vehicle, "he said.

"I am afraid that the resistance to the inclusion of larger quantities of crypto in financial products for private customers is more philosophical than dealing with details," added Spangler. "I don't think this is a customs game."