In its latest attempt to meet the SEC’s approval, a digital currency asset manager is relying on a legal detail to bolster its chances to create a crypto ETF. However, with the SEC’s current stance that crypto ETFs trade on unregulated platforms with fraud and manipulation concerns, the firm Grayscale and its large crypto investment vehicle may continue to be blocked from obtaining ETF status. Grayscale’s new application hinges on the argument that their spot bitcoin product should not be treated differently from bitcoin futures products that the SEC has approved. Amy Lynch, FrontLine’s Founder and President, was interviewed by the Financial Times and states that the SEC’s approval of spot bitcoin ETFs would remain difficult until its Chair Gary Gensler changes his position, currently a low probability. Ms. Lynch explains that matters including funds’ pricing, valuation, custody and liquidity would all need to become standardized and more transparent. See Financial Times, “Grayscale makes fresh push for SEC approval to become bitcoin ETF”
Also, see related article in Blockchain Journal, “Grayscale Prepared for any SEC Response to its Bitcoin ETF,” with Amy Lynch, FrontLine’s Founder and President quoted.