Grayscale files opening brief in Bitcoin ETF battle against SEC
US Spot Bitcoin Exchange Traded Fund (ETF) Draws Support For CEO Of Digital Currency Group (DCG) Barry Silbert It said it was time for the SEC to approve.
The comments came as DCG subsidiary Grayscale Investments filed an opening statement to securities regulators that have continued to deny and delay physical applications for the BTC ETF.
Grayscale currently operates a Bitcoin trust product and had previously applied to convert it into an ETF. Denied Grayscale application due to the role of Tether (USDT) in the system.
In response, the asset manager filed a lawsuit against the SEC, and Grayscale CEO Michael Sonnenshain said he was “extremely disappointed” and “strongly opposed.”[d]” Depends on the decision of the regulator.
Grayscale argues that denial of Bitcoin ETF conversion is unfair.
October 11th, grayscale submitted the opening legal brief to US Court of Appeals for the District of Columbia challenges SEC’s dDecision Denying Conversion of Grayscale Bitcoin Trust to a Spot ETF.
Brief presented an argument highlighting the SEC’s unfair treatment of such products. It further noted that the standards used to inform regulatory decisions were flawed and applied “extraordinarily harshly.”
“[The] SEC Denial of Conversion of Grayscale to Grayscale Bitcoin Trust (GBTC) finding a Bitcoin ETF was arbitrary, capricious, and discriminatory. “
Brief said the SEC’s green light for several Bitcoin futures ETFs in 2021 and 2022 is inconsistent with its rejection of spot ETF products. Furthermore, since both Spot ETFs and Futures ETFs derive their prices “based on overlapping indices,” same risk and protection. ”
“Its strict arbitrariness cannot be justified or reconciled with the Commission’s decisions. Mandatory to treat similar cases alike.Rather, it A Substantial Judgment About The Benefits Of Bitcoin Spot Investing — A Kind Of Substantial Judgments Outside the Commission’s Authority. “
Spot vs Futures
Spot Bitcoin ETFs operate on the actual price of BTC and a common price capture mechanism is the average price from (say) 5 trusted exchanges. Bitcoin futures ETFs, on the other hand, are based on futures trading on the CME.
In general, spot products are used by individual investors, while futures products tend to be preferred by well-capitalized institutional investors.
Although differences exist between spot and futures prices due to the different price-driving mechanisms behind each market, it is argued that the futures market still derives its price from the underlying spot market. increase.
The Bitcoin futures market is regulated by the Commodity Futures Trading Commission (CFTC), not the SEC.