crypto asset manager Grayscale Investmentsof the Securities and Exchange Commission (SEC) spot bitcoin (BTC) presented the initial summary of the lawsuit filed after the exchange-traded fund application was rejected.
Grayscale Says SEC’s Spot Bitcoin (BTC) ETF Rejection Hurts Investors
The company depends on regulators’ spot market pricing bitcoin He thinks the law is not applied equally because he approves of futures transactions.
Grayscale Chief Legal Officer Craig Salm In a statement, he said that if the SEC has no shortage of futures contracts priced by exchanges that offer spot market transactions, it should also be comfortable with the underlying asset.
Salm argued that allowing futures without a spot ETF approved makes no difference in the context of Bitcoin because CME Bitcoin futures are priced below the spot Bitcoin market.
SEC, Grayscale’s flagship GBTC fund He rejected the offer to convert to ETF at the end of June. The day the decision was made, the company announced that it would appeal the decision, following previous threats of legal action.
In summary, the company claims that the SEC’s refusal to approve the conversion of GBTC to an ETF has hurt 850,000 investors who already have stakes in the fund.
Many in the industry were in the spotlight when the SEC gave the green light to futures-based Bitcoin ETFs from October last year. Bitcoin ETFHe hoped it would change his stance on the
However, hope began to fade as the SEC continued to reject spot Bitcoin ETF applications, and most recently, WisdomTree’s proposal was rejected yesterday.
Grayscale laid the groundwork for his legal argument in a letter he sent to the SEC in November last year, when the regulator began issuing a new wave of rejections.
At the time, Grayscale said the SEC was willing to approve futures products, but not approving spot products could be a violation of the Administrative Procedures Act.
The SEC is expected to give its answer on November 9.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!