By Michael Scott
On Thursday, August 17, Grayscale Investment indicated that it was expanding the Bitcoin exchange-traded fund (ETF) staff. The news conveyed via its official Twitter (X) profile illustrates confidence in Grayscale’s likely win in the suit opened in June 2022.
Grayscale Investments is embroiled in a legal battle with the Securities and Exchange Commission (SEC), challenging the continued dismissal of its application to convert the Bitcoin Trust into an ETF. The expansion of the ETF team portrays that the lawsuit it initiated against the SEC is edging to its determination.
Grayscale Expanding ETF Team in Readiness of Court Win
The move to expand the ETF team portrays Grayscale as confident of triumph amid a period when SEC faces a wave of applications led by BlackRock, Bitwise, Wisdom Tree, and Invesco. While the Garry Gensler-led securities watchdog postponed the applications, Grayscale Investments’ win would end the wait.
In the LinkedIn advertisement for the position of product specialist and senior associate, Grayscale Investments identifies itself as the leading digital currency asset manager. The post identifies that Grayscale offers diversified investment products that facilitate investors’ access and exposure to the cryptocurrency asset class.
LinkedIn’s post on Thursday, August 17, indicates that the exposure mirrors traditional security without directly necessitating digital currencies’ purchase, storage, and safekeeping. It adds that Grayscale boasts a proven track record and unmatched experience while operating within the purview stipulated by regulatory frameworks. By doing so, Grayscale commits to delivering a secure and compliant ecosystem for investment.
Grayscale Pursues Senior Associate and Product Specialist
The senior associate position attracted over 45 applications though a mid-senior level vacancy. Grayscale illustrates that the senior associate would actively contribute towards developing ideas and work in coordination with the entire ETF team to realize the desired objective.
The product specialist would collaborate with the sales, marketing, and operations teams. The successful applicant would facilitate optimizing investor experience with a bias towards the ETFs.
Grayscale sought court intervention following the denial by the US financial watchdog to convert the Grayscale Bitcoin Trust (GBTC) into the much-sought spot Bitcoin ETF. Bloomberg analyst James Seyffart indicated on Monday, August 14, that the determination of Grayscale’s lawsuit is edging closer.
GBTC involves an investment vehicle facilitating the investors’ exposure to Bitcoin without holding the crypto directly. It differs from spot Bitcoin ETF since it would make it affordable for institutions to execute Bitcoin purchase and sale transactions.
GBTC lacks a redemption mechanism, affecting its capability to track Bitcoin pricing. Also, it charges higher fees.
Grayscale Investment Challenges SEC’s Ground to Deny Bitcoin ETF Application
The court’s decision in Grayscale’s lawsuit could compel SEC to approve the pending spot Bitcoin ETF applications. It could prove several figures wrong that indicated slim chances of the SEC approving the applications for the Bitcoin ETF listing soon.
In previous decisions, the SEC has alleged market manipulation in its denial letters delivered to dismiss spot Bitcoin ETF applications since 2013. A court ruling indicating that SEC’s grounds for denying the conversion are insufficient could change the situation.
The conversion of GBT into the desired spot Bitcoin ETF would enable Grayscale Investments to lower the management fees charged. Also, it would remedy the discounting currently in its shares prices relative to the $18 billion Bitcoin holding. The discounting arises from the existing structure where GBTC shares are redeemable for Bitcoin.
Grayscale Investments Win Would Facilitate Bitcoin ETF Applications
A win for Grayscale Investments would feed into the recent anticipation for spot Bitcoin ETFs approval. The optimism within crypto circles would grant the investors the desired exposure that mounted since BlackRock bid for the elusive Bitcoin ETFs in June.
ARK Investment Management chief executive Cathie Wood has recently projected that SEC would likely approve the applications simultaneously. She supports Grayscale’s argument citing the move by SEC to delay response to the Bitcoin ETF applications.
The continued delay by SEC is disadvantageous to US investors at a time when Jacobi Asset Management unveiled its spot Bitcoin ETF listing on Euronext Amsterdam. The unveiling of the FT Wilshire Bitcoin by the London-based asset management firm would expedite the approval process.
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