The fight for spot Bitcoin (BTC) exchange-traded fund (ETF) in the cryptocurrency space of the United States continues as Grayscale continues its argument that such funds will help boost Bitcoin’s popularity and utility.
Grayscale, the company behind a new cryptocurrency ETF, filed an action against the United States Securities and Exchanges Commission (SEC) regarding their conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The chief legal officer at Grayscale, Craig Salm, discussed this suit with reporters.
Grayscale v/s SEC
Salm outlined Grayscale’s argument against the SEC while answering questions most often asked about their lawsuit. According to the legal officer, the SEC’s denial of the spot Bitcoin ETF separates futures and spot trading for Bitcoin ETFs and draws a distinction between the two.
However, Grayscale believes that the differences should not matter or affect ETF approval since both futures and spot Bitcoin ETF prices are based on the same spot Bitcoin markets.
Therefore, the Grayscale legal team believes disapproving spot Bitcoin ETFs while approving Bitcoin futures ETFs is an “unfair discrimination.” Salm believes that this violates several laws, including the Administrative Procedure Act and Securities Exchange Act of 1934.
After sharing Grayscale’s arguments, Salm also answered a very important question: When will a spot Bitcoin ETF finally be approved?
In spite of the potential lengthiness of this lawsuit, Salm said that he is optimistic about their arguments and looks forward to court, where they will win.
When Grayscale launched its legal challenge to the SEC, community members quickly supported it. Many people were disappointed with the decision to approve an ETF that shorts Bitcoin while denying the spot Bitcoin ETF. A Twitter user claims the move from the SEC may be intended to suppress prices for Bitcoin.
It should be noted that plans to convert GBTC into an ETF are especially important to the fund manager, as it has seen its main Bitcoin fund trade at discounts of more than 30% in recent months.