Request for SEC to Stop Showing Preference for Late Filers in Competition for Market Share in Crypto ETF Race

Executives from leading asset management companies Vaneck, Canary Capital, and 21Shares have penned a collective letter to the United States Securities and Exchange Commission (SEC) urging them to approve a Bitcoin exchange-traded fund (ETF). The letter highlights the growing demand for BTC exposure from institutional investors and the benefits that a Bitcoin ETF could bring to the market.

The executives emphasized that a Bitcoin ETF would provide investors with a regulated and transparent way to gain exposure to the cryptocurrency market. They argued that ETFs are a widely understood investment vehicle that would help mitigate concerns around security and custody issues associated with holding Bitcoin directly.

Furthermore, the letter addressed the increasing interest in Bitcoin among institutional investors, citing data that shows a surge in institutional inflows into Bitcoin-related investment products. The executives pointed out that a Bitcoin ETF would cater to this demand and provide investors with a more accessible way to diversify their portfolios.

The letter also highlighted the regulatory progress made in other jurisdictions, such as Canada and Europe, where Bitcoin ETFs have already been approved. The executives noted that these ETFs have been well-received by investors and have contributed to the growth of the cryptocurrency market in those regions.

In addition to the benefits for investors, the executives argued that approving a Bitcoin ETF would be a positive step for the overall market structure. They believe that a regulated ETF would help improve price discovery and liquidity in the Bitcoin market, leading to a more efficient and transparent trading environment.

The executives called on the SEC to consider the success of other cryptocurrency investment products, such as Grayscale’s Bitcoin Trust, which has seen significant growth in assets under management. They believe that a Bitcoin ETF would further institutionalize the cryptocurrency market and attract more traditional investors to the space.

Overall, the joint letter from Vaneck, Canary Capital, and 21Shares makes a compelling case for the approval of a Bitcoin ETF by the SEC. The executives believe that such an ETF would benefit investors, improve market structure, and further legitimize Bitcoin as an asset class. They urge the SEC to carefully consider their arguments and take proactive steps to support innovation and growth in the cryptocurrency market.