Grayscale challenges SEC’s decision on leveraged Bitcoin ETF as GBTC discount narrows
Crypto asset manager Grayscale questioned In a July 10th letter, the U.S. Securities and Exchange Commission decided to approve a leveraged Bitcoin (BTC) Exchange Traded Fund (ETF).
The company’s Bitcoin Trust (GBTC) has also shrunk to its lowest since May 2022, according to ycharts. data,
GBTC discount narrows
GBTC’s discount to net asset value (NAV) has shrunk to 27.49%, and the stock was trading near $20, according to ycharts. data.
Over the past few weeks, GBTC’s discount rate has shrunk and its share price has outperformed Bitcoin’s value. For context: GBTC stock According to BTC, the value of BTC has increased by nearly 43% over the past month, while the value of BTC has only increased by 17% over the same period. of crypto slate data.
Market players attributed GBTC’s improved performance to BlackRock’s filing of a Bitcoin spot ETF. Since the asset manager applied for a spot BTC ETF on June 15, other traditional financial institutions, including Fidelity, have also applied for similar ETFs.
SEC Doubts Over BTC Leveraged ETFs In Grayscale
10th july, grayscale criticized The SEC’s actions in the US financial regulator’s decision to approve leveraged BTC ETFs (investment funds that seek to increase profits through the use of financial derivatives and debt) prove that the SEC is acting arbitrarily. claimed to be.
The company wrote:
“The 2x Leveraged Bitcoin Futures ETF employs leverage with the goal of doubling the performance of the S&P CME Bitcoin Futures Daily Roll Index every day. You will be exposed to an investment product that is even riskier than the product.”
Grayscale said the excitement generated by this leveraged BTC ETF wasWhat investors are eager for BTC Avoid risks with ETF wrapper protection. ”
The firm added that there is no valid reason for the SEC to approve leveraged futures products while denying approval of spot products.
Last year, the SEC rejected Grayscale’s plan to convert Bitcoin Trust into an ETF, and the company filed a lawsuit against the SEC, arguing that a spot ETF would be no different than a futures ETF previously approved by the SEC. forced to wake up.
Post-Grayscale, which disputes the SEC’s decision on a leveraged Bitcoin ETF, made its first appearance on CryptoSlate as GBTC’s discount spread narrows.
