Digital asset supervisor Grayscale has filed a letter in its lawsuit in opposition to the US Securities and Alternate Fee (SEC) over the rejection of a spot Bitcoin exchange-traded fund (ETF), citing a doable precedent in furtherance of its case.
In a letter dated July 10, Grayscale’s authorized group notified the U.S. Court docket of Appeals for the District of Columbia Circuit of the itemizing of Volatility Shares Belief’s leveraged Bitcoin (BTC) futures ETF. The crypto funding automobile began buying and selling on June 27 with out interference from the SEC, which thus far has not accepted any spot crypto ETFs however has accepted ones tied to BTC futures.
In line with Grayscale, the Volatility Shares ETF exposes buyers to an “even riskier funding product” than BTC futures ETFs, suggesting a doable avenue for the SEC to approve its providing. The asset supervisor filed a authorized problem in opposition to the fee in June 2022 after the SEC denied an utility to transform its Grayscale Bitcoin Belief right into a spot Bitcoin ETF.
“The truth that the Fee has allowed a leveraged bitcoin futures ETP to start buying and selling demonstrates that the Fee continues to arbitrarily deal with spot bitcoin ETPs in a different way than bitcoin futures,” mentioned Grayscale. “The 2x Bitcoin Technique ETF is subsequently uncovered to much more dangers of the bitcoin markets than Grayscale’s proposed spot bitcoin ETP.”
Associated: Why a Bitcoin ETF approval could be an enormous deal
In the present day, our attorneys filed a letter with the DC Circuit highlighting the disparity between the SEC’s approval of a leveraged #bitcoin futures ETF whereas persevering with to disclaim approval of spot bitcoin ETFs like $GBTC. Let’s dive deeper. /6 pic.twitter.com/z7WyGBthhT
— Grayscale (@Grayscale) July 10, 2023
The letter added:
“The one strategy to eradicate the Fee’s unequal therapy of bitcoin-based ETPs is to permit proposed spot bitcoin ETPs like Grayscale’s to start buying and selling.”
A number of corporations have filed functions for spot crypto ETFs with the SEC, together with BlackRock — the most important asset administration firm on the planet — and ARK Funding Administration. Following a June report during which SEC officers claimed the crypto ETF filings weren’t “sufficiently clear and complete,” a few of the functions had been refiled to incorporate crypto alternate Coinbase as a surveillance associate.
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