Grayscale Urges SEC to Approve Spot Bitcoin ETF, Citing Recent Court Ruling and Investor Needs
Grayscale, through its legal representatives, has submitted a letter to the SEC emphasizing the need for equal treatment of spot bitcoin ETFs and bitcoin futures ETFs. The letter argues that the SEC’s rejection of spot bitcoin ETF applications without providing clear reasoning is unjustifiable.
By referencing the recent decision by the D.C. Circuit Court, the letter asserts that the SEC cannot impose additional surveillance requirements on spot bitcoin ETFs beyond what is necessary for bitcoin futures ETFs.
With the Court of Appeals’ ruling, there is no valid reason to differentiate between a bitcoin futures ETP and a spot bitcoin ETP, based on the Commission’s previous rejection of spot bitcoin ETPs.
The letter also highlights the prolonged processing time for Grayscale’s ETF application and questions whether the SEC’s earlier disapproval order fulfilled its obligation to act within specified timeframes. Urging prompt approval in light of the court ruling, the lawyers emphasize the adverse impact of continued delay on Grayscale’s investors, who are facing trading at a significant discount and limited investment options.
Hot Take:
The SEC should carefully consider Grayscale’s arguments and promptly approve the spot bitcoin ETF application to ensure fair treatment and meet investor demands. Failure to do so not only hampers Grayscale’s current investors but also restricts investor choice and forces them into less efficient alternatives. With the growing interest and potential of cryptocurrencies, it is crucial for regulatory bodies to adapt and provide a level playing field for all market participants.
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