Attorneys for Grayscale Criticize SEC for Allowing Leveraged Bitcoin ETF
Attorneys representing asset management company Grayscale have criticized the U.S. Securities and Exchange Commission (SEC) for approving the first leveraged bitcoin exchange-traded fund (ETF) while rejecting previous spot fund proposals. Grayscale lawyer Donald Verrilli argued that a leveraged bitcoin ETF is an even riskier investment product and accused the SEC of treating spot bitcoin ETFs differently than bitcoin futures ETFs.
Main Breakdowns:
- Grayscale lawyers criticize SEC for approving leveraged bitcoin ETF while rejecting spot fund proposals.
- Lawyer Donald Verrilli argues leveraged bitcoin ETFs are riskier.
- SEC allowed the first bitcoin futures ETF to trade in 2021.
- Grayscale previously filed a case against the SEC for rejecting its proposal to convert its flagship fund, GBTC, into a spot bitcoin ETF.
- SEC cites concerns of fraud and market manipulation when assessing past applications for spot bitcoin ETFs.
Other Asset Managers Seeking Spot Bitcoin ETF:
While the SEC has not yet approved a spot bitcoin ETF, major asset managers like BlackRock and Fidelity have recently filed proposals with the agency. However, these proposals could face challenges from the SEC, which has expressed concerns about fraud and market manipulation in the past.
Hot Take:
The debate over the approval of spot bitcoin ETFs continues, with Grayscale criticizing the SEC’s decision to allow a leveraged bitcoin ETF while rejecting previous spot fund proposals. The SEC’s concerns about fraud and market manipulation seem to be a significant factor in its decision-making process. It remains to be seen how the agency will handle the proposals from asset managers like BlackRock and Fidelity seeking approval for spot bitcoin ETFs.
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