Digital asset manager Grayscale has filed a letter in its lawsuit against the US Securities and Exchange Commission (SEC) over the rejection of a Bitcoin spot exchange-traded fund (ETF), citing a possible precedent in furthering its case.
In a letter dated July 10, Grayscale’s legal team more dangerous US Court of Appeals for the District of Columbia Circuit to List Bitcoin (BTC) Futures ETF. The cryptocurrency investment vehicle began trading on June 27 without interference from the SEC, which has not yet approved any crypto ETFs but has approved Bitcoin futures-linked ETFs.
According to Grayscale, the volatile stock ETF exposes investors to a “riskier investment product” than BTC futures ETFs, indicating a possible avenue for the SEC to approve its offering. The asset manager filed a legal challenge against the commission in June 2022 after the Securities and Exchange Commission (SEC) denied Grayscale Bitcoin Trust’s conversion request to a Bitcoin ETF.
“The fact that the Commission has allowed leveraged Bitcoin futures ETPs to begin trading demonstrates that the Commission continues to arbitrarily treat Bitcoin ETPs differently from Bitcoin futures contracts,” Grayscale said. Thus, the Bitcoin 2x strategy ETF is exposed to greater risk in the bitcoin markets than Grayscale’s proposed spot bitcoin.
Related: Why approval of a Bitcoin ETF would be such a big deal
Today, our attorneys filed a letter with the DC Department highlighting the discrepancy between the SEC’s approval of leverage # Bitcoin A futures ETF while continuing to refuse to approve spot ETFs such as Bitcoin GBTC dollars. Let’s dig deeper. / 6 pic.twitter.com/z7WyGBthhT
Grayscale July 10, 2023
The message added:
“The only way to eliminate the commission’s unequal treatment of bitcoin-based ETPs is to allow proposed spot bitcoins like Grayscale to start trading.”
Several companies have filed for ETFs with the SEC, including BlackRock — the world’s largest asset manager — and ARK Investment Management. Following a June report in which SEC officials claimed crypto ETF filings weren’t “clear and comprehensive enough,” some applications were regrouped to include cryptocurrency exchange Coinbase as a monitoring partner.
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