Grayscale told the SEC that they have no basis to approve a Bitcoin futures ETF and not a spot BTC ETF as this indicates a discrepancy in the denial of applications as we can see more on the news today. Our latest bitcoin news.
Grayscale Investments have protested against the US SEC over the rejection of the VanEck Bitcoin ETF spot application. Grayscale Bitcoin operator Belief sent a letter to US SEC Secretary Vanessa Countryman, arguing that the regulator wrongly rejected a spot Bitcoin ETF for approving three Bitcoin futures ETFs, one each Valkyrie, ProShres and VanEck. Grayscale told the SEC that there was no basis in its ruling to believe that investing in the derivatives market for assets is acceptable to investors, while investing in the property itself is not.
She alleged the SEC violated the Administrative Protection Act by failing to treat the two Bitcoin ETF products equally. A bitcoin futures ETF allows traders to speculate on the future price of BTC via derivatives, while a spot bitcoin ETF allows traders to trade at the current price of the asset, much like holding an asset.
Grayscale is a largely disinterested party with a motion filed back in October to list GBTC as a BTC-forked ETF, with the decision being made on Christmas Eve. In November, the SEC denied VanEck’s similar filing on the grounds that it did not meet the requirements of the Securities Exchange Act of 1934. However, Grayscale disagreed:
“We believe that this justification has not taken into account significant regulatory and competitive developments since 2017, when the Commission first reviewed and rejected a national exchange application for admission and trading for Spot Bitcoin ETP.”
In approving Bitcoin Futures ETFs, Grayscale believes that the SEC has allowed applicants to circumvent the requirements of Section 6 (5) (B) of the Stock Exchange Act that applicants for BTC Place ETFs must meet. This section is designed to protect investors and the public interest by doing everything possible to prevent fraud and market manipulation and not to allow unfair discrimination between issuers, customers, agents or brokers. Grayscale predicts that its spot Bitcoin ETF will be listed by July 2022, but it remains unclear whether the prediction will materialize. GBTC currently manages approximately $ 37.1 billion in assets.