Grayscale’s attorneys jumped against the American securities regulatory body with the latest complaint with the DC Circuit Court over the agency’s biased approval of the Bitcoin products.
Grayscale is a popular American Digital assets manager firm. The firm provides investment in several flagship crypto assets with the help of its products e.g. Grayscale Bitcoin Trust (GBTC), Ethereum Trust, etc. Grayscale is a subsidiary of Digital Currency Group (DCG). In the present time, the financial position of this firm is not healthy and in the last few weeks, DCG grabbed several media attention because it conflicted with the Gemini crypto exchange.
On 10 July 2023, Grayscale’s legal team submitted a letter to the DC Circuit Court of Appeals. Through the letter, the Grayscale team alleged that the United States Securities Exchange Commission (SEC) is approving Bitcoin futures ETF products but not Bitcoin spot ETF, which is safer than the first one.
Grayscale argued that the SEC body’s regulatory approval for these products is showing that the agency’s decisions are arbitrary. Furthermore, the letter read that the company has no objection to the approved Bitcoin futures ETFs but is concerned that the SEC agency is not in favor of the Bitcoin spot ETFs, which are safer for Investors.
“The fact that the SEC has allowed a leveraged BTC futures ETF to start trading shows that the institution continues to treat spot BTC ETFs arbitrarily differently from Bitcoin futures ETFs,” the letter read.
Initially, the SEC agency rejected Grayscale’s Bitcoin spot ETF & all other similar applications between 2022 to 2023. For the last 12 months, the Grayscale team has been trying its best to use the legal facts to secure regulatory approval.
At present, half a dozen Bitcoin spot ETF applications are on the table of the SEC agency and all of these applications are waiting to get regulatory approval. Experts believe that BlackRock’s Bitcoin spot ETF application will only secure regulatory approval, as backed by the Nasdaq stock exchange & Coinbase exchange to ensure that no price manipulation will take place.