Grayscale Writes To US Court Over SEC’s Unequal Treatment Of Bitcoin ETFs

• Grayscale Investments has called retired the SEC for approving Bitcoin futures ETFs implicit spot Bitcoin ETFs
• The DCG subsidiary precocious penned a missive to a Columbia tribunal to item the SEC’s unequal attraction of BTC-based ETFs. 
• Grayscale’s missive came much than a twelvemonth aft it sued the SEC for denying its spot BTC ETF application. 
• The SEC has since rejected respective different spot Bitcoin ETF applications filed by BlackRock, Fidelity, etc. 

Grayscale Investments, the plus absorption elephantine down the world’s largest Bitcoin, has called retired the U.S. Securities and Exchange Commission (SEC) for approving riskier Bitcoin futures ETFs and rejecting applications for the comparatively safer spot Bitcoin ETFs. The Digital Currency Group (DCG) subsidiary penned a missive to the US Court of Appeals for the District of Columbia Circuit earlier contiguous to explicit its vexation with the SEC’s caller conduct. 

Grayscale: Leveraged Bitcoin ETF Exposes Investors To Greater Risk

According to the letter sent to the Columbia District Court, the SEC’s determination to let the trading of Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) exposed investors to an concern merchandise that was riskier than Bitcoin futures ETF. The missive was sent by Don Verrilli of Munger, Tolles & Olsen, the instrumentality steadfast which represents Grayscale Investments. The securities regulator approved trading of the BITX ETF starting June 27, 2023. BITX has already accumulated $15 cardinal successful assets. 

“The information that the Commission has allowed a leveraged bitcoin futures ETP to statesman trading demonstrates that the Commission continues to arbitrarily dainty spot bitcoin ETPs otherwise than bitcoin futures ETPs.”

Verrilli stated successful his missive that the 2x Bitcoin Strategy ETF sought to treble the show of the S&P CME Bitcoin Futures Daily Roll Index each day. He added that the Volatility ETF successful question exposed investors to adjacent much risks of the BTC markets than Grayscale’s projected spot Bitcoin exchange-traded merchandise (ETP). The missive from Grayscale comes much than a twelvemonth aft it sued the SEC for denying its spot Bitcoin ETF application.