Bitcoin ETFs are a great matter of interest for investors and the authorities. While we saw some advancement in the space as the first BTC ETFs were approved in the US, they were all Future ones and not Spot. Therefore, Grayscale calls out the SEC for disapproving spot ETFs and discriminating between both. The difference between them is that while future ones do not need to hold any Bitcoin, Spot ones will have to do so. In fact, the price of Bitcoin will benefit from ETFs only when a SPOT one is approved by the SEC.
Grayscale calls out the SEC
The recent rejection of the VanEck Spot Bitcoin ETF application has many companies and investors agitated. The question is, if the SEC can approve Future BTC ETFs, then what’s wrong with Spot ones. And if there is something wrong, the SEC needs to speak about it openly. Therefore, Grayscale has issued a letter to the Secretary of the SEC, Vanessa Countryman, arguing that they are wrong to reject the Spot Bitcoin ETFs. The funny part is they have already approved a future ETF from VanEck.
The letter sent by Grayscale also said that SEC has no logic for indirectly saying that investing in the derivatives market of an asset is okay but investing directly in the asset is not. In fact, we all know that the Spot ETFs are going to be much safer due to the presence of real Bitcoins.
Grayscale about SEC rejecting in Spot ETF
The SEC said that the Spot ETF didn’t meet their requirement of the Securities and Exchanges Act of 1934. To this, Grayscale replied that they completely disagree with the logic as there have been a lot of changes in the act since 2017. In fact, the authorities didn’t take into account these changes. The SEC argues that the Spot ETF must adhere to section 6(5)(b) to protect investors and the public interest by preventing fraud. Now, if the future ETFs haven’t fulfilled those requirements, the SEC shouldn’t have approved them. And if they did what they should say, why the Spot ETF don’t meet those requirements.
What are your thoughts as Grayscale calls out the SEC for not approving Spot BTC ETFs? And do you think that the officials have any real logic for this decision? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.