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Crypto asset manager Grayscale has questioned <\/a>the US Securities and Exchange Commission’s decision to approve a leveraged bitcoin (BTC<\/a>) exchange-traded fund (ETF) in a July 10 letter.<\/p>\n The firm’s Bitcoin Trust (GBTC) also narrowed to its lowest point since May 2022, according to ycharts. date<\/a>,<\/p>\n GBTC’s discount to its net asset value (NAV) narrowed to 27.49%, and its shares were trading near $20, according to ycharts. date<\/a>,<\/p>\n During the past few weeks, GBTC’s discount has increasingly narrowed<\/a>, and the value of its shares has outperformed that of Bitcoin. For context GBTC Shares<\/a> have risen by nearly 43% during the past month, BTC’s value gained only 17% during the same time frame, according to CryptoSlate’s<\/em> date<\/a>,<\/p>\n Market observers have attributed<\/a> GBTC’s improved performance to BlackRock’s application for a Bitcoin spot ETF. Since the asset manager applied<\/a> for a spot BTC ETF on June 15, other traditional financial institutions, including Fidelity and others, have applied<\/a> for a similar ETF.<\/p>\n On July 10, Grayscale criticized<\/a> the US financial regulator’s decision to approve a leveraged BTC ETF\u2014an investment fund that aims to generate amplified returns by using financial derivatives and debt\u2014arguing that the SEC’s actions prove it is acting arbitrarily.<\/p>\n The firm wrote:<\/p>\n \u201cThe 2x leveraged bitcoin futures ETF employs leverage with the goal of doubling the performance of the S&P CME Bitcoin Futures Daily Roll Index each day. This exposes investors to an even riskier investment product than traditional bitcoin futures exchange-traded products.\u201d<\/p>\n<\/blockquote>\n Grayscale pointed out that the excitement generated by this leveraged BTC ETF shows that \u201ciinvestors are eager for <\/span>BTC<\/span> exposure with the protections of the ETF wrapper.\u201d <\/span><\/p>\n The firm added that the SEC had no good reason to deny the approval of spot products while approving leveraged futures products.<\/span><\/p>\n Last year, the SEC rejected Grayscale’s plan to convert its Bitcoin Trust into an ETF, forcing the firm to file a litigation<\/a> against the SEC arguing<\/a> that a spot ETF was no different from a futures ETF\u2014which the SEC had previously approved.<\/p>\n The post Grayscale challenges SEC’s decision on leveraged Bitcoin ETF as GBTC discount narrows<\/a> appeared first on CryptoSlate<\/a>,<\/p>\nGBTC discount narrows<\/h2>\n
Grayscale questions SEC over BTC leveraged ETF<\/h2>\n
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