By The Daily Hodl - 1 year ago - Reading Time: 2 minutes
Crypto Giant Grayscale Submits Letter to SEC in Bid for Approval of First Spot Bitcoin ETF: Report
Crypto asset manager Grayscale has reportedly submitted a letter to the U.S. Securities and Exchange Commission (SEC) in an attempt to get the nod for the first spot-based Bitcoin (BTC) exchange-traded fund (ETF).
According to a new report by the Financial Times (FT), Grayscale recently sent a letter to the regulatory agency asking if they can convert their $40 billion Bitcoin trust into an ETF.
So far, the SEC has rejected every other spot-based Bitcoin ETF application while giving the green light for futures-based Bitcoin EFTs.
In the letter seen by FT, Grayscale mentions the approval of Teucrium’s futures Bitcoin ETF and argues that a spot-based Bitcoin ETF should also be governed by the same rules.
“We believe the Teucrium order confirms the fundamental point…
When it comes to approving [exchange-traded funds], there is no basis for treating spot Bitcoin products differently from Bitcoin futures products.”
In a lengthy Twitter, thread, Grayscale CEO Michael Sonnenhein explains why Teucrium’s futures Bitcoin ETF is not different from a spot Bitcoin ETF.
“Today, in approving Teucrium’s application under the ’33 Act, the SEC cleverly decided to define the market as just the CME (Chicago Mercantile Exchange) Group and the underlying assets as just CME Bitcoin futures, which of course makes CME significant since its 100% of the CME Bitcoin futures market!
What’s wrong with this argument? Well, digging deeper, lets remember that CME Bitcoin futures are *priced based on spot Bitcoin markets* and therefore directly influenced by them.
Therefore, if the SEC is comfortable with a Bitcoin futures ETF, they must also be comfortable with a spot Bitcoin ETF. And they can no longer justifiably cite the ’40 Act as being the differentiating factor.”
The SEC is scheduled to make a decision on Grayscale’s Bitcoin ETF application in July.
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Original source: The Daily Hodl