TL; DR Breakdown
- Grayscale tackles SEC over Bitcoin spot ETF rejection
- Grayscale says SEC has no reason to reject VanEck’s ETF
- The investment company wants to launch its spot ETF in July 2022
Over the last few months, the United States Securities and Exchange Commission has been on a blocking spree on Bitcoin ETFs. According to their usual excuse, the products could cause massive market manipulations among all other ills in the sector. Recently, Van Eck applied for an ETF that was put into consideration by the regulatory body for months. But despite the project showing promise, the United States SEC gave its verdict, which was a no as expected. However, Grayscale has called out the body in an open letter over favoring and approving Bitcoin Futures ETFs and not Bitcoin spot ETFs.
Grayscale says SEC has no reason to reject VanEck’s ETF
In the open letter addressed to the secretary of the regulatory body, Vanessa Countryman, by Grayscale, it pointed out that the scale does not have any reason to reject spot Bitcoin ETFs. In its argument, the investment company noted that since the body already gave the go-ahead to futures Bitcoin ETF, it should start accepting the spot ETF.
Notably, the United States SEC has approved three futures Bitcoin ETFs with VanEck, ProShares, and Valkyrie, the awarded parties over the last few months. Grayscale argued that there is no reason why some traders can enjoy the benefits of the derivatives market and others cannot benefit from the assets. It also claims that the United States SEC is no longer following the Administrative Protections Act because they were supposed to treat the two products the same way.
Grayscale plans to launch its spot ETF in July 2022
Holding a futures Bitcoin ETF would allow a trader to earn rewards from speculating how much it would cost in the future, while spot Bitcoin ETF is the same as holding and trading digital assets. Grayscale, through its arm GBTC has applied to list a spot Bitcoin ETF with the company awaiting words from the United States SEC on December 24.
The main reason why the VanEck ETF was rejected, according to the SEC, was because the product did not go in line with the 1934 Exchange Act. However, Grayscale is not having it as they believe that the law has refused to consider many changes that have occurred since 2017. The United States SEC denied its first spot Bitcoin ETP back in 2017, citing its grounds against VanEck.
Grayscale also believes that traders of Bitcoin futures ETF have been given a free ground against the conditions that traders of spot ETF must follow. The grounds, section 6(5)b of the Exchange Act, seek to cover investors against the market’s ills while eliminating favoritism among traders and investments. Grayscale had previously announced that its Bitcoin spot ETF could go live in July 2022, but recent events make traders doubt the claim.
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