The US SEC received a letter on May 25, the militarization and for the first time if we can say, sent by a person wishing to invite its approval for a Grayscale ETF project. The post this time comes from Robert Whaley, the man who created Wall Street’s most used fear index. By addressing the SEC in this way, it openly supports Grayscale Investments LLC, which seeks to transform its bitcoin fund into an exchange – traded product.
Whaley case for Grayscale bitcoin ETF
The Cboe Volatility Index was created by Robert Whaley in 1993. In a letter dated May 25, he asked the Securities and Exchange Commission to approve Grayscale Investments LLC ‘s application for the $ 20 billion Bitcoin Trust Grayscale (GBTC ticker). is, converted into an ETF. Professor of finance at Vanderbilt University in Nashville, Robert Whaley knows his stuff.
His argument is focused on logic of the opposite desert “. The SEC has launched the ProShares Bitcoin Strategy ETF (BITO) in October, the first U.S. fund backed by bitcoin derivatives. Whaley compared the returns of the Chicago Mercantile Exchange bitcoin futures index, tracked by BITO, with those of the CoinDesk bitcoin price index, which would track GBTC, from January to May 25 and found that both ” almost perfect venues “.
Futures-based ETFs need to take into account the cost of continuously rolling futures contracts as they expire, which strengthens the case for the current Bitcoin ETF, Whaley wrote.
” Futures-based Bitcoin ETFs like BITO are a much more expensive and inefficient way for investors to access bitcoin compared to a more transparent and well-designed Bitcoin ETP site like GBTC Whaley wrote in the letter. ” Because futures Bitcoin ETFs are already approved by the Commission, it needs to be comfortable with a Bitcoin ETP spot like GBTC. »
The SEC has a current deadline until early July to decide on the application, which was filed in October. Grayscale met with the SEC last month about this. Because GBTC is a trust and not an ETF, shares cannot be redeemed when demand cools, leaving GBTC at a discount for its bitcoins. Converting the trust into an ETF would release up to $ 8 billion in value, if the discount were repaired, Grayscale said last month.
Grayscale intends to go all the way. According to its CEO, Michael Sonnenshein, if the SEC rejects a Grayscale application, the company does not rule out filing its lawsuit to challenge this decision.
At present, it does not indicate that the position of the regulatory authority has changed. Moreover, just a few days ago, it rejected One River Asset Management’s request to launch a Bitcoin spot ETF. By July, we will know his decision on his “verdict” on Grayscale.
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and put forward my pen information related to this ecosystem.