Grayscale argues that the differences between futures and spot Bitcoin
ETFs have no correlation to approvals because prices are based on the
same spot Bitcoin markets.
Asset management firms continue to fight for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States as regulators remain skeptical of the idea.
Craig
Salm, chief legal officer at asset manager Grayscale, discussed the
firm's lawsuit with the United States Securities and Exchanges
Commission (SEC) regarding the conversion of the Grayscale Bitcoin Trust
(GBTC) into a spot Bitcoin ETF.
Salm explained the basis for Grayscale’s argument against the SEC
while answering the most-asked questions regarding the lawsuit.
According to the legal officer, the SEC's denial of the spot Bitcoin ETF
separates futures and spot trading for Bitcoin ETFs and draws a
distinction between the two.
However, Grayscale argues that the
differences have no correlation with Bitcoin ETF approvals as both
futures and spot Bitcoin ETF prices are based on the same spot Bitcoin
markets.
Thus, the Grayscale legal team believes that the
disapproval of spot Bitcoin ETFs amid the approval of Bitcoin futures
ETFs can be considered "unfair discrimination." Salm claimed that this
violates several laws including the Administrative Procedure Act and the
Securities Exchange Act of 1934.
After explaining Grayscale's
arguments, Salm also answered the most common question among those
following the lawsuit’s developments: When will a spot Bitcoin ETF finally be approved?
According
to Salm, while there is no certainty about the exact timing — due to
many factors — heestimates that it could take from one to two years.
Despite
the potential length of the lawsuit, Salm said that Grayscale firmly
believes in its arguments and is positive that the courts will rule in
its favor.
Related: Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF
When Grayscale launched its legal challenge to the SEC, community members rallied behind the firm. Many were disappointed with the decision to disapprove the spot Bitcoin ETF while approving an ETF that shorts Bitcoin. A Twitter user alleged that the SEC’s move aims to “suppress the price of Bitcoin.”
source link : https://cointelegraph.com/news/grayscale-legal-officer-says-bitcoin-etf-litigation-could-take-two-years
