Grayscale says SEC is wrong to reject spot Bitcoin ETFs
Grayscale fund manager firm raised voice against SEC agency because of rejection of Bitcoin spot ETF application of VanEck.
At present, there are three Bitcoin Futures ETFs available on trade, each fromVanEck, Valkyrie, and ProShares. Three futures of Bitcoin were approved by the Securities and Exchange Commission (SEC) around a month ago. After the approval of Bitcoin futures-based ETF applications, many experts said that the SEC agency will approve Bitcoin spot ETF easily without any hesitation. But the situation is not going the same as expected.
The SEC agency rejected the Bitcoin spot ETF application of VanEck. In response to this action of the SEC agency, on 29 November, Grayscale firm wrote a letter to Vanessa Countryman- Secretary of the SEC- and said that the SEC agency is wrong with its decision to reject the application of Bitcoin ETF.
“no basis for the position that investing in the derivatives market for an asset is acceptable for investors while investing in the asset itself is not.”, Grayscale letter read
According to Grayscale, the Sec agency violated the Administrative Protections Act (APA) because they are not treating the same for two products of Bitcoin ETF.
Bitcoin futures ETF is based on the speculation of the Bitcoin price, where traders can do trade based on the speculation. And in Bitcoin spot ETF, traders can do trading based on the current price, and also traders can make a profit through their better speculation. So here both of these two products are the same, from the point of view of most of the experts.
In October, Grayscale firm applied to change its GBTC into a Bitcoin spot ETF product. The decision of the SEC agency on the application of Grayscale will come before Christmas Eve. But there are huge chances that Grayscale firm is ready to get a rejection because of the recent decision of the SEC agency on the application of VanEck’s Bitcoin spot ETF.
Read also: Indian Finance minister says no separate framework on NFTs
