While investors await the SEC’s verdict on Grayscale’s proposal to convert GBTC to an ETF, the company provided an update on Monday. As the 240-day application review procedure with the SEC approaches, CEO Michael Sonnenshein voiced confidence in the outcome.
The SEC is expected to make a decision on GBTC soon.
Grayscale’s CEO stated that the SEC’s ruling was expected as early as next month.
“We anticipate a decision from the SEC by early July, and you’ll be hearing from the Grayscale team with more information as it becomes available. Grayscale is unequivocally committed to converting GBTC to an ETF. We have left no stone unturned.”
Sonnenshein stated that Grayscale has made recent progress and that the process is only getting started. He noted that earlier, the usual conversation was around Grayscale’s identity and Bitcoin’s credentials. He added that the current discussions revolve around Bitcoin halving and themes such as miner concentration, hashrate, and transactional throughput on the network.
According to recent data, GBTC performed worse than Bitcoin. Based on Bitcoin’s 55 percent drop this year, figures show that GBTC has dropped by more than 63 percent.
Exploring Alternatives If the SEC Rejects Grayscale Bitcoin ETF
Grayscale’s CEO stated that the company is looking into other options if the SEC does not allow GBTC to convert to an ETF. According to him, the firm’s legal team presented serious, complete arguments in favour of GBTC’s conversion to an ETF.
“Most recently, we retained one of the country’s premier advocates, former U.S. Solicitor General Donald B. Verrilli, Jr., as a senior legal strategist. We have created the strongest possible legal team to help us articulate the importance of this issue.”
However, based on the SEC’s recent actions, Grayscale is optimistic about the ETF’s approval. According to the SEC, this improved recognition and familiarity with the maturity of the underlying Bitcoin market.
Grayscale filed a letter to the SEC in April of this year regarding legal intricacies to add value to the application. Grayscale is well prepared if the ETF approval comes through in July, it reiterated.
“GBTC is operationally ready to convert to an ETF the moment we are given the appropriate regulatory approvals. For this conversion, we have selected best-in-class partners, including BNY Mellon and EY, among others.”
Since the SEC issued a notice in November last year seeking Grayscale’s views on the application, the company has pursued a public relations approach. A microsite, a campaign to push people to the site, and meetings with prominent policymakers were all part of the multidimensional plan to educate the broader public.
Grayscale has also formed strategic alliances with various media outlets in Washington, D.C. The firm also reached out to crypto thought leaders, including researchers at multiple think tanks.