Teucrium’s approval of a Bitcoin futures ETF is the basis for a similar decision on Grayscale’s application to convert GBTC into an exchange-traded fund. The company stated this in a letter to the SEC, The Block writes.
“There is no basis for treating spot Bitcoin products differently than futures products based on it”the document said
In early April, the SEC approved a product from Teucrium. It complies with the provisions of the Securities Exchange Act of 1934 just as Grayscale’s application does.
Earlier, Gary Gensler, head of the Commission, said that for the possible approval of exchange-traded funds based on the first cryptocurrency, their underlying assets must be CME Bitcoin futures.
He also mentioned the application process under the Investment Company Act of 1940. The regulator subsequently authorized trading in futures Bitcoin-ETFs from VanEck, Valkyrie Investments, and ProShares based on it.
“Teucrium’s product approval confirms that the 1940 Act is not the basis for the Commission’s verdict. Any fraud or manipulation of the underlying market would affect both products [spot and futures Bitcoin-ETFs] equally. The existence of these risks cannot justify refusing to approve one product after approving the other”said Grayscale’s lawyers
Grayscale filed an application to convert a Bitcoin trust into an ETF in October 2021. In February 2022, the SEC delayed its decision until July 6.
Earlier, the company said it was ready to sue the agency if it refused to convert GBTC into an exchange-traded fund based on the first Cryptocurrency.
A survey conducted in April on behalf of Nasdaq showed that 72% of financial advisors surveyed approved of investing in a spot Bitcoin-ETF