Grayscale Complaints To SEC Court For Not Approving Bitcoin Spot ETF!
Grayscale, a prominent cryptocurrency company, has lodged an appeal with the DC Circuit Court of Appeals to challenge the SEC's rejection of their spot Bitcoin ETF application.
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The company argues that the SEC's approval of a leveraged Bitcoin futures ETF while rejecting spot Bitcoin ETFs was arbitrary. Grayscale attorney Donald Verrilli stated in a letter to the U.S. Court of Appeals for the District of Columbia that a leveraged Bitcoin ETF is an even riskier investment than the spot Bitcoin ETF.
Verrilli pointed out the inconsistency in the SEC's treatment of spot Bitcoin ETFs compared to Bitcoin futures ETFs, citing the recent approval of a leveraged BTC futures ETF. This new ETF aims to amplify the daily performance of a BTC futures index using borrowed funds.
Grayscale clarifies that they do not oppose the existence of leveraged futures products, but rather question the fairness and inconsistency in the SEC's approval process.
In 2020, Grayscale applied for a spot Bitcoin ETF, which was rejected by the SEC due to concerns about insufficient regulation and transparency in the BTC market. The company subsequently sued the SEC, alleging violations of the Administrative Procedure Act and Investment Company Act by applying different standards to different Bitcoin product types.
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