01 December 2021 07:42, UTC
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As it became known, the Grayscale Bitcoin Trust operator a few days ago sent a letter to SEC Secretary Vanessa Countryman, where it was said that the SEC was conducting the wrong policy by not recognizing spot Bitcoin ETFs, since it is already Bitcoin Futures ETFs.
Grayscale believes that the SEC has no tools and grounds to say that investments in derivatives are profitable for investment funds, and investments in the asset itself are unprofitable.
According to representatives, the Grayscale SEC is violating the Administrative Protection Act by not using the same treatment of the two Bitcoin ETF products. Bitcoin Futures ETFs are known to enable traders to speculate on future Bitcoin prices using derivatives. A spot Bitcoin ETF enables each of the traders to trade at existing asset prices.
This is not to say that Grayscale is an uninterested party, since it has already submitted an application, which was issued back in the fall. In November, the SEC did not consider a similar application from VanEck, on the grounds that it did not meet the requirements of the 1934 Stock Exchange Act.
In turn, Grayscale representatives believe that such a rationale did not take into account the changes that have occurred in the world and in the market since 2017. It was then that the SEC did not begin to process the application of the securities exchange for listing and trading shares of the spot Bitcoin ETP.
In approving Bitcoin futures ETFs, Grayscale points out that the SEC gave an opportunity for applicants not to comply with Section 6 (5) (b) of the Exchange Act. At the same time, Grayscale believes they will be able to list the spot Bitcoin ETF next summer. However, it is unknown if this will actually happen next year.
This situation indicates once again that bureaucratic obstacles hinder the development of the market. This situation needs to be changed as it hurts the entire cryptoindustry. But it remains to be seen whether the SEC will agree to remove some of the requirements for the crypto market.
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
#Grayscale #Investments #blames #SEC