Lawyers Demand SEC Approve Grayscale's Bitcoin ETF Proposal

09/06/2023

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Grayscale lawyers have urged the SEC to immediately approve a Bitcoin ETF application. The letter followed a recent the U.S. Court of Appeals for the D.C. Circuit Court decision.

Davis Polk and Munger Tolles & Olson, the law firms representing Grayscale, stressed in a letter to the regulator the uselessness of splitting the concepts of futures Bitcoin ETFs and spot Bitcoin ETFs. The former type of product has been approved by the SEC, and Grayscale plans to create the latter.

According to the lawyers, the regulator rejected 15 applications to create bitcoin ETFs after futures ETFs approval, with no argument that the two products are different. Taking note of the court's decision, lawyers say the regulator has no right to impose additional supervisory measures on spot Bitcoin ETFs.

They also pointed out that Grayscale's application to create a Bitcoin ETF has been delayed by the US Securities and Exchange Commission three times. This is the deadline for the regulator to approve the application. Given all this, the lawyers are demanding that the SEC immediately approve Grayscale's application.

Grayscale's legal team sums it up by highlighting the delay is primarily damaging to Grayscale's investors.

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