Subject: File No. SR-NYSEArca-2021-90
From: Andrew Weitz
Affiliation:

Feb. 23, 2022

 


Dear SEC, 
  
I’m writing to support the conversion of Grayscale Bitcoin Trust (Symbol: GBTC), currently the world’s largest Bitcoin fund, to the first Spot Bitcoin ETF in the United States. 


I live in Virginia and have owned GBTC for two years.  During this time, I have watched my holdings drop gradually due to the large 2% management fee that Grayscale charges, coupled with complexities of how GBTC operates that have caused its premium to decline over time.  I purchased my GBTC at about a 10% premium, and now the premium is almost -30%.  This is a horrible investment vehicle, but it is the ONLY way that I can get exposure to bitcoin through my retirement portfolio.  There are millions of others out there like me. 


Converting GBTC to a spot ETF would solve this problem.  It is ridiculous that the SEC would approve a futures ETF, but not spot ETF - especially given that unsavvy investors may not understand the difference and would end up losing money if investing in a futures ETF. 


In summary, a GBTC conversion to a spot ETF would help PROTECT investors by creating the first vehicle that truly tracks the price of bitcoin over time, rather than causing GBTC investors to gradually lose money over time for no good reason.  The SEC is currently hurting US investors by only allowing two horrible options for retail investors who want bitcoin exposure (GBTC and futures ETF). 


Sincerely, 
Andrew Weitz, PhD