The legal minds behind Grayscale, the prestigious crypto asset manager, have sent a decisive letter to the U.S. Securities Exchange Commission (SEC), urging the organization to act expediently on their proposed Spot Bitcoin ETF. This maneuver comes hot on the tail of a recent court decision that ruled the SEC improperly dismissed said proposal. The legal eagles, from renowned firms Davis Polk and Munger Tolles & Olson, delivered the message a mere week post-ruling.
The court’s decision marked a significant moment. The SEC was judged to have ineptly justified its dismissal of the Spot Bitcoin ETF proposal. Now, the pressure is on for the SEC to reevaluate Grayscale‘s application. But it’s not all cut-and-dried – the SEC could still appeal the court’s decision.
Grayscale’s legal representation isn’t pulling any punches. Joseph Hall of Davis Polk highlighted what he sees as inconsistencies in the SEC’s approach to Bitcoin ETFs. “[We] believe the commission should conclude that there are no grounds for treating the trust differently from ETPs [exchange-traded products] that invest in Bitcoin futures contracts,” says Hall.
According to Grayscale, their Spot Bitcoin ETF merits approval due to its intended reliance on the same market surveillance structure as the previously approved Bitcoin futures ETF – a structure involving the Chicago Mercantile Exchange (CME).
Hall’s letter contained a sense of urgency, noting that if any substantial distinction existed between Spot Bitcoin ETPs and Bitcoin Future ETPs, it would no doubt have been identified by now.
Grayscale’s missive to the SEC also argues that continued delays in approving the Spot Bitcoin ETF could result in harm to investors. Hall concluded his letter with a call to action: “We believe the trust’s nearly one million investors deserve this fair playing field as quickly as possible…” He postulates that U.S. investors are being forced to grapple with inferior product structures that do not mirror the simplicity and streamlined approach that a spot Bitcoin ETF would bring – a statement illustrated by the notable spike in investments to Bitcoin futures ETFs.
In a separate development, noted legal expert Felix Shipkevich, from New York-based law firm Shipkevich PLLC, suggested in an interview with CryptoNews that the SEC is unlikely to appeal and predicted a Spot Bitcoin ETF approval in the near future. Regardless of where one stands on the matter, the ball is squarely in the SEC’s court and the clock is ticking on their next move.
Source: Cryptonews
