Asset management businesses are continuing their fight in the United States for a spot Bitcoin (BTC) exchange-traded fund (ETF), despite the fact that regulators continue to be wary of the idea.
Grayscale Files Complaint with SEC
Asset manager Grayscale has filed a complaint with the United States Securities and Exchanges Commission (SEC) over the conversion of the Grayscale Bitcoin Belief (GBTC) into a spot Bitcoin exchange-traded fund (ETF). The chief legal officer of the company, Craig Salm, discussed the action.
While answering the most frequently asked questions on the case, Salm provided an explanation of the basic premise of Grayscale’s claim against the SEC. In reply to the authorized officer, the SEC’s decision to reject the spot Bitcoin ETF distinguishes between futures trading and spot trading for Bitcoin ETFs, as well as highlights the major dissimilarities between these two types of trading.
However, Grayscale contends that the differences do not have any connection whatsoever with Bitcoin ETF approvals because futures and spot Bitcoin ETF prices are based on the same spot Bitcoin markets.
Difference of Opinions
Therefore, the authorized staff at Grayscale is of the opinion that the denial of spot Bitcoin ETFs in contrast to the acceptance of Bitcoin futures ETFs may be seen to be an example of unjust discrimination. According to Salm, this breaches a variety of legal principles, including the Administrative Process Act and the Securities Exchange Act of 1934. He also argued that this was illegal.
After providing an explanation of Grayscale’s positions, Salm responded to the question that was asked the most frequently by those who were following the events of the lawsuit: When will a spot Bitcoin exchange-traded fund (ETF) finally be allowed?
According to Salm, even while there is no such thing as a certainty for the precise timetable — as a result of many other factors — he believes that this take time to complete and estimates it will take about one to two years to complete.
Grayscale Hopes for the Good News
Salm added that Grayscale has unwavering faith in its claims and is hopeful that the courts will decide in its favour, despite the fact that the amount of litigation might end up being rather significant.
When Grayscale first presented its legal challenge to the SEC, people of the community quickly came to the company’s defence. The decision to reject the spot Bitcoin ETF and instead accept an ETF that shorts Bitcoin was met with widespread disapproval from market participants. An individual who uses Twitter made the allegation that the SEC’s transfer aims are to reduce the value of bitcoin.
