Grayscale has sent another letter to the SEC to approve a spot Bitcoin ETF.
Leading digital asset manager Grayscale continues to push for a spot Bitcoin ETF. On April 18, the company sent another letter to the US Securities and Exchange Commission (SEC) explaining why its own spot Bitcoin ETF application should be approved.
The company said in the letter that the recently approved Teucrium product lays the groundwork for the approval of Grayscale’s spot Bitcoin ETF. It was noted that the product in question was approved under the Securities Exchange Act of 1934, as opposed to the Investment Act of 1940. Law 34 is the framework through which Grayscale will launch its ETF.
An industry commentator thinks the SEC can no longer use the distinctions between Act 40, the legislation under which all other futures ETFs are approved. Similarly, Grayscale is not in the spotlight under Law 34; He thinks the SEC would have been arbitrary if a futures-based product were approved.
“Futures ETF Is No Less Risky”
The company also addressed the issue of market manipulation, which the SEC raised in approving a spot ETF. According to him, both a futures and a spot ETF are no less risky than the other, as they get the data from the same source. The letter included the following statements on the subject:
“As both spot and futures Bitcoin products are exposed to the same underlying Bitcoin market, any fraud or manipulation in the underlying market will affect both products in the same way (… ) Therefore, the existence of these risks cannot be a reason for not granting approval to a product after approval has been granted for the other product.”
Grayscale has been pressing the SEC for a spot ETF for a long time. CEO Michael Sonnenshein underlined that they will consider all options, including legal action against the SEC, during this process.
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