Grayscale SEC win brings spot GBTC ETF approval a step closer

Grayscale has scored a win in its case against the Securities and Exchange Commission (SEC) concerning the conversion of its Grayscale Bitcoin Trust (GBTC) product into an exchange-traded fund (ETF).

The judge in the case specifically found that the “denial of Grayscale’s proposal was arbitrary and capricious because the commission failed to explain its different treatment of similar products.”

The SEC has previously approved futures-based bitcoin ETFs but has yet to approve any spot-based bitcoin ETFs. Grayscale filed this lawsuit after the SEC originally denied the conversion of its GBTC product to an ETF.  

The SEC’s denials of spot bitcoin ETFs and approval of futures-based ETFs have frequently appeared to hinge on a belief that the futures were more resistant to manipulation. The judge specifically detailed how “Grayscale presented uncontested evidence that there is a 99.9% correlation between bitcoin’s spot market and CME futures contract prices.” 

The SEC maintained that this analysis doesn’t “provide evidence of the causal economic relationship of interest: namely, whether fraud or manipulation that impacts spot bitcoin would also similarly impact CME bitcoin futures contracts.”

Grayscale considers GBTC buyback if it loses SEC lawsuit

Read more: Lawsuit puts pressure on Grayscale to open GBTC books

The judge’s order concludes, “The Commission failed to adequately explain why it approved the listing of two Bitcoin futures exchange-traded products (ETP) but not Grayscale’s proposed Bitcoin ETP. In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful.”

This decision doesn’t mean that GBTC is immediately converted to an ETF (the SEC could potentially find alternative reasons to deny the product) but it does make a spot approval more likely. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on Twitter, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

Comments

Post a Comment

Popular posts from this blog

Elon Musk Denies Talks to Raise $3 Billion to Pay Twitter Debt Elon Musk Denies Talks to Raise $3 Billion to Pay Twitter Debt

Image
The Wall Street Journal reported that Elon Musk is in talks to raise $3 billion to pay off the substantial Twitter debt looming over the platform. The report states that Musk is exploring potential fundraising in an effort to begin paying back some of the $13 billion in debts that are connected to the social media platform. The report notes that Musk and his representatives have been in talks to sell up to $3 billion in Twitter shares. Adding that people close to the matter have cited discussions as far back as December. Conversely, Musk has taken to Twitter to deny the report. Source: MacRumors Musk Seeking Sale of $3 billion in Twitter Shares Since his $44 billion acquisition of the platform months ago, it has not been an easy road for Elon Musk ’s new Twitter . The controversy surrounding mass layoffs, and the highly publicized development of the subscription service have all been a constant aspect of the platform since his ownership. A massive part of his early per...
Read more

Shiba Inu Poised To Destroy A Zero: Here's When

Image
The Shiba Inu network is setting its sights on a significant milestone in the world of crypto currencies: the eradication of a decimal point. In crypto lingo, “eliminating a zero” is the term used when a coin’s price increases tenfold, effectively shifting its decimal point to the right. While this journey may be lengthy, it is by no means unattainable, and the SHIB community is abuzz with anticipation. With Shiba Inu’s (SHIB) current price standing at $0.00000793, the community is optimistic about SHIB’s prospects for destroying another zero from its price point. To accomplish this feat and breach the $0.00001 level, SHIB would need to achieve a gain of roughly 25.5%. Notably, the last time SHIB traded above the $0.000001 mark was back in August, as per Binance’s data. Source Amidst this development, the SHIB market saw a recent decrease in trading volume. While some may find this worrisome, others interpret it as a positive signal. Reduced tra...
Read more

After BRICS Success, President Xi Jinping Likely To Skip G20 Summit

Image
After the successful BRICS summit in Johannesburg, Chinese President Xi Jinping is most likely to skip attending the G20 summit in New Delhi, India. Sources familiar with the matter said that Chinese Premier Li Qiang will represent that nation at the G20 summit in September. Two Indian officials, one diplomat in China, and an official of another G20 country told Reuters on condition of anonymity that Qiang is expected to lead China’s efforts on behalf of Jinping at the summit. Also Read: Second BRICS Expansion Soon: South African PM Makes Huge Announcement Jinping is most likely skipping the G20 summit comes on the heels of the border dispute between India and China. The recent controversy over border disputes engulfed after China drew a map showcasing Arunachal Pradesh a part of Chinese territory. For the uninitiated, Arunachal Pradesh is a State in the northeast part of India and borders China. The proximity to China has caused several border disputes for decades. Whil...
Read more