Grayscale Takes on SEC in Bidding for Bitcoin ETF Spot
In its legal battle with the SEC over the transformation of the Grayscale Bitcoin Trust into a spot Bitcoin ETF, Grayscale has now presented its closing arguments. The business claimed that their filings were “basically identical” to earlier briefs but included more “citations and references” to back up its assertions.
SEC rejects Bitcoin ETF
All applications for a spot Bitcoin ETF have continuously been rejected by the SEC, although derivative alternatives like ProShares Bitcoin Strategy (BITO) and Valkyrie Bitcoin Strategy ETF have been accepted instead (BTF). The regulatory body mentioned Bitcoin’s volatility as a key consideration for making its choice.
The Conflict Timeline for Grayscale
On Grayscale’s website is a detailed history of the continuing conflict, which started in June 2022. The documents give a detailed account of what happened before the closing arguments.
The main defense is an unreasonable SEC framework
The trial will focus heavily on Grayscale’s evaluation of the SEC’s framework for permitting a spot Bitcoin ETF. The Commission’s strategy, according to Grayscale, is “fundamentally unreasonable,” and their stringent guidelines prevent any spot Bitcoin ETF from passing the “significant-market test.”