Grayscale Calls SEC’s Refusal to Approve Spot ETF Unreasonable

Grayscale Investments called unreasonable the decision of the US Securities and Exchange Commission (SEC), by which it rejected VanEck’s application for a spot Bitcoin ETF.

Operator Grayscale Bitcoin Trust (GBTC) sent a letter to the Secretary of the Securities and Exchange Commission, Vanessa Countryman, in which he argued that the SEC made a mistake by rejecting an application to create spot Bitcoin ETFs.

According to Grayscale, the SEC has no reason to argue that investing in an asset’s derivatives is more acceptable to investors than investing in the asset itself.

He claims that the SEC violated the Administrative Protection Act (APA) by showing unequal treatment of the two Bitcoin ETF products.

A Bitcoin Futures ETF allows traders to speculate on the future price of Bitcoin (BTC) through derivatives, while a spot Bitcoin ETF allows traders to trade at the current price of an asset, thus functioning in a similar way to holding an asset.

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