Grayscale bashes the SEC for rejecting a spot BTC ETF

Grayscale bashes the SEC for rejecting a spot BTC ETF

Grayscale, the world’s largest Bitcoin investment fund, bashes the SEC for its ignorance towards Bitcoin trading. The US SEC has rejected so many sport Bitcoin ETFs that we have all lost count. But at the same time, they continue to approve future ETFs. Now, the SEC says that this is because spot ETFs can be used for market manipulation, and they want to protect investors. But the funds that are applying for a spot ETF do not agree with that logic.

Grayscale fights back SEC’s decision

The Bitcoin investment fund has proposed to convert its $15 billion fund into a spot ETF. This will not only increase adoption but can also solve the problem of a huge slippage between the funds’ price and Bitcoin’s. However, the SEC has rejected their application citing investor protection and market manipulation as problems.

Grayscale bashes the SEC for rejecting a spot BTC ETF

Grayscale is completely against this logic and clearly states that their current trust can be more easily manipulated when compared to ETF futures based on bitcoin trading price indexes. And since BTC futures and spot prices have the same underlying markets, there should be no reason to reject a spot Bitcoin ETF.

This is why Grayscale believes that the SEC is showing a “special harshness” towards Bitcoin trading. They are not looking at applications unbiasedly which is why so many have been rejected till now. And if it worries the SEC so much, then even the future ETFs share the same problem as the spot ones would. Therefore, Grayscale’s chief legal officer Craig Salm said, “If you’re OK with one, you must also be OK with the other because you otherwise would be arbitrary.”

About Grayscale Bitcoin fund

Grayscale is the largest biggest Bitcoin fund in the world and is also known as (GBTC). It is also the first publicly traded trust in history whose value is derived from a digital currency.  Since GBTC is a trust that invests in cryptocurrencies, you can purchase its shares using your brokerage account. By doing this, you skip the inconvenience of buying BTC through a cryptocurrency exchange and indirectly purchase it. This implies that you depend on Grayscale to act as a middleman and buy and hold Bitcoin on your behalf.

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