Why them and not us? The Securities and Exchange Commission (SEC), which will soon find it difficult to refuse new applications forBitcoin ETF spot view the number of contenders jostling for position. BlackRock, Fidelity, but also Valkyrie and Grayscalewhich is of particular interest to us today, are among them. Michael Sonnenshein’s company was one of the first to make such a request, months ago now, and is naturally one of the first to have been rejected by the SEC. But far from admitting defeat, the Digital Currency Group subsidiary continues to fight and its lawyer recently took up the pen to call the regulator to account. Will Gary Gensler’s teams be receptive to Grayscale’s letter-writing arguments? The beginnings of an answer to follow.
Regulator’s inconsistencies pointed out by Grayscale’s lawyer…
The letter is dated July 10 and signed by Donald B. Verrilli Jr.the company’s attorney in Stamford, Connecticut. To Marl Langerthe clerk of the Court of Appeals for the District of Columbia, the purpose of the missive is to demonstrate to the SEC all theabsurdity of its latest decisions. More specifically, it criticizes the approval of another leveraged financial product, while at the same time spot ETFs are refused. For Grayscale, this conclusion makes no sense, because these leveraged financial products are « much riskier » :
« The fact that the Commission approved a leveraged Bitcoin futures ETP demonstrates that the Commission continues to arbitrarily treat bitcoin spot ETPs differently than Bitcoin futures ETPs. »
As a reminder ETFS – exchange traded funds – are a subcategory of ETP – exchange traded products These are so-called exchange-traded financial products, which provide exposure to different asset classes without actually owning them.
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… who wrote to the Columbia Court of Appeals to complain
Grayscale has already tried to convert its fund GBTC into a Bitcoin spot ETFbut the agency has refused this proposal under the pretext of possible price manipulationor even fraud. At the same time, the SEC authorized ETF futuresas the prices were indexed to those of the Chicago Mercantile Exchange, making them de facto subject to oversight by the Commodity Futures Trading Commission (CFTC), the other US financial regulator.
But the SEC are beginning to be thin on the ground in this case, and some observers believe it is only a matter of time before famous ETF Bitcoin spot were finally authorized by the American financial watchdog. This is how the former head of the institution, Jay Claytonbelieves that the efforts financial players will eventually pay off and bend the regulator’s will.
Deadlines for taking up positions run until September, but no doubt we’ll have more information in the coming weeks. Visit arguments of the lawyer in question influence the position of SEC ? From a legal and logical point of view, there are good hopes for a policy change within the Washington institution, but other voices were raised to say that the very presence of Gary Gensler could be a a brake on the regulator’s volte face. See you soon for the rest of this summer’s crypto series!
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