Grayscale: SEC Rejects Spot Bitcoin ETF in Possible Violation of Administrative Procedure Act
TokenInsight News, following the U.S. SEC's recent rejection of a spot bitcoin ETF application, Grayscale is refuting the regulator's arguments. Grayscale sent a letter to the SEC arguing that the failure to treat spot and futures bitcoin ETF products the same may violate the Administrative Procedure Act (APA). A bitcoin futures ETF allows traders to speculate on the future price of bitcoin through derivatives, while a spot bitcoin ETF would allow traders to trade at the asset's current price, thus functioning similarly to holding the asset.
Grayscale is reportedly looking to convert its GBTC to an ETF, and filed with the U.S. SEC in October. A decision could be made as early as Dec. 24.