Grayscale, a leading digital currency asset manager, sends a powerful message to the Securities and Exchange Commission (SEC) after its recent victory in court. Discover what this court win means for the future of the cryptocurrency industry and the regulatory landscape. Grayscale’s strong stance resonates with crypto enthusiasts and investors, highlighting the increasing importance of clear regulatory frameworks for the growing digital asset market. Stay informed on the latest developments and understand the implications of this court ruling.
Grayscale Urges SEC to Approve Bitcoin Spot ETF After Court Victory
Grayscale, the digital currency investment firm, has sent a letter to the Securities and Exchange Commission (SEC) following its recent court victory against the regulator. The letter emphasizes that the SEC has no valid reasons to continue denying the approval of a Bitcoin spot ETF.
Grayscale’s Comment Letter
In the comment letter published on Tuesday, Grayscale encourages the SEC to “move expeditiously” towards approving a spot ETF for Bitcoin. The firm argues that there are no grounds to treat spot Bitcoin ETFs differently from futures ETFs.
The letter states, “If any other reason could be offered in attempting to differentiate spot bitcoin ETPs from bitcoin futures ETPs… we are confident that it would have surfaced by now in one of the fifteen Commission orders that rejected spot bitcoin filings.”
Grayscale’s Lawsuit
Grayscale initially filed a lawsuit against the SEC, accusing the agency of being “arbitrary and capricious” for favoring Bitcoin futures ETFs over spot ETFs. The court ruled that the SEC was being “unreasonable” in discounting the financial and mathematical relationship between the spot and futures markets.
Furthermore, Grayscale highlights that its filing to convert its Bitcoin Trust into a spot ETF has been pending for a significant period of time, exceeding the SEC’s approved deadline. The company questions whether the SEC’s disapproval order, which was later vacated by the Court of Appeals, fulfills the Commission’s obligation to act within the required timeframe.
The Importance of Spot ETFs
Grayscale stresses that the SEC’s delay in approving spot ETFs continues to adversely affect existing GBTC investors. Additionally, it argues that investors at large strongly prefer spot ETFs over futures ETFs.
The company also points out that other spot ETF applicants have attempted to enter surveillance-sharing agreements with Coinbase to satisfy the SEC’s demands. Grayscale seeks a similar arrangement with the Chicago Mercantile Exchange (CME) and believes that the CME’s involvement should be sufficient for approval.
Grayscale concludes its letter by urging the SEC to consider its decision carefully and prioritize the interests of investors.