Asset management firms continue to fight for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States as regulators remain skeptical of the idea. Grayscale claims that the differences between futures and spot Bitcoin ETFs have no correlation to approvals because prices are based on the same spot Bitcoin markets.
Craig Salm, chief legal officer at asset manager Grayscale, conferred the firm’s lawsuit with the United States Securities and Exchanges Commission (SEC) regarding the conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Salm described the basis for Grayscale’s argument against the SEC while answering the frequently asked questions regarding the lawsuit. The legal officer said the SEC’s rejection of the spot Bitcoin ETF separates futures and spot trading for Bitcoin ETFs and draws a distinction between the two.
However, Grayscale argues that the differences have no association with Bitcoin ETF endorsements as both futures and spot Bitcoin ETF prices are based on the same spot Bitcoin markets.
Thus, the Grayscale legal team believes that the condemnation of spot Bitcoin ETFs amid the approval of Bitcoin futures ETFs can be considered “unfair discrimination.” Salm claimed that this violates several laws including the Administrative Procedure Act and the Securities Exchange Act of 1934.
After demonstrating Grayscale’s arguments, Salm also answered the most common question among those following the lawsuit’s developments: When will a spot Bitcoin ETF finally be approved?
Salm estimates that it could take from one to two years due to many factors.
In spite of the probable length of the lawsuit, Salm claimed that Grayscale firmly believes in its arguments and is positive that the courts will rule in its favor.
When Grayscale put its legal challenge to the SEC, community members assembled behind the firm. Many were disappointed with the decision to condemn the spot Bitcoin ETF whereas approving an ETF that shorts Bitcoin.
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