America Securities and Change Fee (SEC) has as soon as once more delayed its ruling on whether or not to approve Grayscale’s utility for a Bitcoin (BTC) exchange-traded fund (ETF), citing acquainted considerations round manipulation, liquidity and transparency. 

In a discover revealed Friday afternoon, the SEC expressed considerations about how the digital asset supervisor intends to transform its Grayscale Bitcoin Belief (GBTC) right into a spot ETF. Particularly, the regulator wasn’t satisfied that Grayscale’s proposal was designed to forestall alleged fraud and manipulation within the Bitcoin market. The SEC has invited the general public to touch upon these points, giving events 21 days to reply in writing.

As Cointelegraph reported, Grayscale’s preliminary utility to transform shares of GBTC right into a spot Bitcoin ETF was submitted to the SEC in October. Lower than two months later, the securities regulator introduced that it was suspending its determination on Grayscale’s utility and an identical proposal put ahead by Bitwise.

Grayscale is the world’s largest digital asset supervisor with $36.5 billion in property beneath administration as of Feb. 4. Its GBTC product accounts for over 71% of its complete property. 

Associated: Canadian Bitcoin ETF sees its third-biggest each day influx ever

Whereas the SEC has been hesitant to approve a spot Bitcoin ETF, the regulator has been way more receptive to a futures-linked product. In October, the ProShares Bitcoin Technique ETF turned the primary Bitcoin futures fund to be permitted in the US. Shortly thereafter, the SEC permitted a pair of Bitcoin-linked Technique ETFs from Valkyrie and VanEck.

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