The Securities and Exchange Commission (SEC) turned down Grayscale Investments’ request for a spot Bitcoin exchange-traded fund (ETF), prompting Grayscale to file an official complaint. According to Grayscale, the SEC approaches spot Bitcoin ETPs with extreme severity and exceeds its statutory authority. On Tuesday, Grayscale’s chief legal officer, Craig Salm, stated that if the SEC agrees with how futures contracts are valued by exchanges that allow spot market trades, it should be happy with the underlying asset. SEC Over Bitcoin ETF Refusal Salm argued that the allowance of futures without the approval of a spot ETF is a “distinction without a difference in the context of Bitcoin” because “CME Bitcoin futures themselves are priced under the spot Bitcoin market.” The business expanded on its position in the initial brief submitted in the lawsuit. In late June, the regulator turned down Grayscale’s request to turn its flagship fund, GBTC, into an ETF. The business declared it would appeal the ruling the same day, making good on earlier threats to file a lawsuit. The argument in today’s brief is that the 850,000 investors who already possess shares in the Trust would suffer because the SEC rejected GBTC’s conversion. SEC Approves Futures-Based Bitcoin ETFs When the SEC approved the launch of futures-based Bitcoin ETFs in October of last year, many in the sector hoped that the SEC would reverse its position on spot bitcoin ETFs...
