Mar. 11, 2022
I'm writing to you concerning Grayscale's application to convert GBTC Trust to an ETF, as well as other firms' applications to offer pure Bitcoin ETF's. I understand one of the SEC's concerns is that Bitcoin is subject to market manipulation. However, you're already approved an ETF based on Bitcoin futures, and any manipulation would be reflected in BTC futures prices as well. Additionally, investors can already easily purchase GBTC and other securities which serve as a proxy for crypto, only without the transparency and low fees a pure BTC ETF would offer. As an investor, I should not be forced into a futures-based BTC ETF because that's my only choice. We need competition among Grayscale, Skybridge, Fidelity, and other providers to ensure that all investors have access to many ETF solutions. GBTC is already the world's largest Bitcoin fund, and voluntarily reports to the SEC. Unfortunately, as a trust its price doesn't precisely track its underlying NAV. Converting it to an ETF would be better for everyone...I don't know of any parties aside from the SEC that are opposed to this proposed conversion. Thank you for your consideration of my request. Regards, Chris Soignier