SEC: Grayscale was justified to refuse to launch a spotal eTF on bitcoin – Bits Media

United States Securities and Exchange Commission (SEC) continues to count, that futures and spot exchange funds for bitcoins are different products.

The American regulator gave its response to the management company Grayscale Investments regarding the deviation of the application for converting the GBTC trust to a spot exchange rate (ETF) of bitcoin. SEC counts, that the refusal of the approval of the launch of the cryptocurrency exchange fund was “justified and reasonably explained”: 

“Earlier, the commission approved ETF, which are based on futures contracts CME, registered in CFTC; Thus, the basic assets of these funds are subject to strict supervision. BTC Sports market, against, fragmented and not regulated. The applicant did not present significant arguments in favor of the thesis about, that CME supervision for the trade in futures will be enough to determine and contain fraud and manipulations in the spot market ".

The Grayscale team noted, that the statement of the regulator is an important stage of the trial, which the company started after refusing SEC to approve the ETF launch on bitcoins. Grayscale is counted, that the SEC is biased in spot cryptocurrency ETF, Since regulatory authorities previously approved Futures ETF on bitcoins .

In August, Grayscale Investments sued the US Securities and Exchange Commission, demanding to cancel the SEC refusal. According to Grayscale, The commission must allow the transfer of GBTC to ETF, since such products are already traded on stock sites.