Feb. 22, 2022
Dear SEC, Please be aware that I have invested in GBTC in my retirement account to take advantage of retirement tax incentives with exposure to Bitcoin the digital asset. There is no easier way for an investor like me to be exposed to Bitcoin other than an ETF. Due to the approval of the Futures ETF, there has been evidence that large institutions are utilizing a "cash and carry" trade that helps them get a return, free of risk. This does not seem right to me, where the rules have been skewed to help the rich and the institutions, but to hurt the average investor. Had I kept my money only in BTC itself, I would have made 50% more profit than I have right now. And with the GBTC premium to NAV continue to go negative due to this neglect of regulation, I feel as if I am losing trust in the SEC and retirement accounts in general. I urge you to do the right thing by understanding that Bitcoin is worldwide, price will always have some discrepancies across borders and jurisdictions. But letting companies like Grayscale offer to protect the average investor by keeping the prices as close to spot BTC price (minus management fee) would be way more fair that what is currently happening (-25% premium to NAV). We have seen stocks take a hit where the average investor can get hurt. But guess what? The average investor can choose to diversify if they want to mitigate losses in a certain investment, such as GBTC. Futhermore, if the SEC wishes to audit Grayscale's supply of BTC, they can create a process to require them to show proof of reserves (which they already have). You can even download a Bitcoin node and audit the total circulating supply yourselves. There will have to be more regulation the further we go into the future (with or without the SEC). But I wish the USA will choose to make a forward-facing decision now such that our economy doesn't get left behind. The world is about to become more open and free, I suggest you take this little baby step in order to ensure you don't get lost and forgotten in the past. Regards, Michael Kelly