Attorneys representing Grayscale Investments recently wrote a letter to the Securities and Exchange Commission (SEC) urging them to expedite the approval of a spot Bitcoin exchange-traded fund (ETF) and end the inconsistent treatment of Bitcoin futures and trusts. The letter references Grayscale’s recent court victory in which the court directed the SEC to review its ETF bid. The court ruling faulted the SEC for rejecting Grayscale’s application without providing a reasoned explanation.
The lawyers argue that the SEC has no grounds to discriminate against exchange-traded products (ETPs) investing in Bitcoin futures contracts, especially given the recent approval of Bitcoin futures ETFs. They highlight that the SEC should approve Grayscale’s application for a spot Bitcoin ETF, as it relied on a similar Market surveillance agreement with the Chicago Mercantile Exchange, which the SEC deemed sufficient for Bitcoin futures ETFs.
The lawyers point out that the court ruling admitted that the SEC failed to explain the material difference between the surveillance-sharing agreement for spot Bitcoin ETPs and futures ETPs. They argue that if the SEC had a contrary opinion, it would have already been stated. They assert that a spot Bitcoin ETF would provide mainstream investors with alternative investments and exposure to Bitcoin without requiring token ownership.
Grayscale Bitcoin Trust, the world’s largest Bitcoin fund, has been seeking approval to convert into an ETF. The continued rejection of this bid has resulted in its shares Trading at a discount relative to Bitcoin holdings, causing unjustified harm to investors. The lawyers believe that the harm could be avoided if the SEC approves the conversion to an ETF. The discount has already subsided to 19.77% following the court ruling, which tightened by over 600 basis points in anticipation of approval.
The lawyers express concern that the delay in approving the spot Bitcoin ETF disadvantages US investors, who are forced to invest in less efficient products based on complex structures. They indirectly reference the recent inflows into Bitcoin futures ETFs following the court ruling. They also note that Grayscale will face fierce competition as the SEC reviews other applications for spot Bitcoin ETFs. They argue that the SEC cannot impose additional requirements for Bitcoin ETFs that exceed what was deemed sufficient for Bitcoin futures ETFs.
Grayscale’s lawyers highlight the court ruling that the surveillance-sharing arrangement between the SEC and the Chicago Mercantile Exchange should be able to detect fraud and manipulative conduct in the Bitcoin and futures market. They also question whether the SEC’s years-long delay in reviewing Grayscale’s application met the legal obligations for timely approval.
Overall, the lawyers’ letter emphasizes the need for the SEC to end the inconsistent treatment of Bitcoin futures and trusts by expediting the approval of a spot Bitcoin ETF. They believe that such an ETF would provide mainstream investors with alternative investments and avoid unjustified harm to investors. They also argue that the SEC should not impose additional requirements for Bitcoin ETFs that exceed those for Bitcoin futures ETFs..
#Grayscale #Urges #SEC #Grant #Bitcoin #Spot #ETF #Approve #Court #Victory
The lawyers argue that the SEC has no grounds to discriminate against exchange-traded products (ETPs) investing in Bitcoin futures contracts, especially given the recent approval of Bitcoin futures ETFs. They highlight that the SEC should approve Grayscale’s application for a spot Bitcoin ETF, as it relied on a similar Market surveillance agreement with the Chicago Mercantile Exchange, which the SEC deemed sufficient for Bitcoin futures ETFs.
The lawyers point out that the court ruling admitted that the SEC failed to explain the material difference between the surveillance-sharing agreement for spot Bitcoin ETPs and futures ETPs. They argue that if the SEC had a contrary opinion, it would have already been stated. They assert that a spot Bitcoin ETF would provide mainstream investors with alternative investments and exposure to Bitcoin without requiring token ownership.
Grayscale Bitcoin Trust, the world’s largest Bitcoin fund, has been seeking approval to convert into an ETF. The continued rejection of this bid has resulted in its shares Trading at a discount relative to Bitcoin holdings, causing unjustified harm to investors. The lawyers believe that the harm could be avoided if the SEC approves the conversion to an ETF. The discount has already subsided to 19.77% following the court ruling, which tightened by over 600 basis points in anticipation of approval.
The lawyers express concern that the delay in approving the spot Bitcoin ETF disadvantages US investors, who are forced to invest in less efficient products based on complex structures. They indirectly reference the recent inflows into Bitcoin futures ETFs following the court ruling. They also note that Grayscale will face fierce competition as the SEC reviews other applications for spot Bitcoin ETFs. They argue that the SEC cannot impose additional requirements for Bitcoin ETFs that exceed what was deemed sufficient for Bitcoin futures ETFs.
Grayscale’s lawyers highlight the court ruling that the surveillance-sharing arrangement between the SEC and the Chicago Mercantile Exchange should be able to detect fraud and manipulative conduct in the Bitcoin and futures market. They also question whether the SEC’s years-long delay in reviewing Grayscale’s application met the legal obligations for timely approval.
Overall, the lawyers’ letter emphasizes the need for the SEC to end the inconsistent treatment of Bitcoin futures and trusts by expediting the approval of a spot Bitcoin ETF. They believe that such an ETF would provide mainstream investors with alternative investments and avoid unjustified harm to investors. They also argue that the SEC should not impose additional requirements for Bitcoin ETFs that exceed those for Bitcoin futures ETFs..
#Grayscale #Urges #SEC #Grant #Bitcoin #Spot #ETF #Approve #Court #Victory
