US SEC says it was reasonable to deny Bitcoin spot ETF applications: Grayscale
Grayscale stated that the US SEC agency filed the first legal brief and this is the next milestone in Grayscale’ ongoing litigation over the rejection of Bitcoin Spot ETFs products.
Grayscale investments is a popular New York-based American digital currency asset management company and a subsidiary of Digital Currency Group. This company was founded in 2013. This company provides exposure to crypto investment via its GBTC, Ethereum trust, etc.
On 9 December, Grayscale talked about the ongoing developments of legal fight between Grayscale & the United States Securities and Exchange Commission (SEC).
Grayscale said that the SEC agency responded to the rejection of many Bitcoin spot ETF applications and claimed that rejection of Bitcoin Spot ETFs applications including the conversion of GBTC funds into Bitcoin spot ETF products was “reasonable, reasonably explained, supported by substantial evidence.”
Initially, Grayscale challenged the decisions of the SEC agency in October of this year officially. Through the opening legal brief, Grayscale pointed out that approval of Bitcoin futures ETFs was tied to the spot price and also the risks & fraud possibilities associated with Futures & Spot ETFs are equal, so how the SEC agency can say that Bitcoin Spot ETFs products are different from Bitcoin futures ETFs.
Now, the Grayscale team will analyse the response statement of the SEC agency and further will file another legal brief to challenge such claims of the SEC agency. The next brief is due January 13, and the final briefs are due February 3.
Few experts believe that the SEC agency may approve Bitcoin spot ETF applications in mid of 2023 because few policymakers are working to bring changes in the ruling of the Securities regulatory body and in that situation, agency will consider Crypto exchanges & stock trading platforms under the same roof.
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