Grayscale Files Response to SEC Amid New Proposal For GBTC

Crypto concern steadfast Grayscale filed a effect to the US Security and Exchange Commission’s (SEC) absorption to converting its Bitcoin Trust (GBTC) into a spot BTC ETF connected Jan. 13.

The Bitcoin concern steadfast wrote that the SEC’s argument that the Chicago Mercantile Exchange (CME) provides capable extortion against fraud and manipulation successful the BTC futures marketplace but not the spot marketplace is illogical.

Grayscale Says Manipulation connected Spot Market Would Impact Futures

According to the firm, immoderate fraud oregon manipulation successful the spot marketplace would impact the terms of Bitcoin futures. Grayscale presented the correlation betwixt the 2 products, adding however an enactment connected 1 whitethorn impact the other. 

“Either CME surveillance tin observe spot-market fraud that affects some futures and spot ETPs, oregon that surveillance cannot bash truthful for either benignant of ETP.”

SEC Arbitrarily Applied its “Significant Market Test”

Grayscale’s main ineligible serviceman Craig Salm further pointed out that the SEC arbitrarily applied its “significant marketplace test.” Salm said the fiscal regulator applies the trial relaxedly for futures Bitcoin ETFs. However, the aforesaid trial is applied “strictly for spot bitcoin ETFs to get to a results-driven conclusion.”

“The trial successful and of itself exceeds the SEC’s statutory authorization and is arbitrary and unreasoned. The trial is profoundly flawed, fundamentally rewarding BTC futures for being taxable to 2 kinds of risks, portion penalizing spot bitcoin for being taxable to lone 1 of those risks,” Salm said.

The ineligible serviceman concluded that the firm’s connection to person its spot into a spot ETF satisfies the law. He added that the ETF is designed to forestall fraud and manipulation portion protecting investors and the nationalist interest.

Grayscale is owned by the embattled crypto conglomerate Digital Currency Group (DCG).

Osprey Funds Submits Proposal For GBTC

Meanwhile, Greg King, the CEO of Osprey Fund, has submitted a connection for GBTC. The CEO wrote a Jan. 13 unfastened missive to DCG’s CEO Barry Silbert, asking him to sanction his money arsenic the sponsor of the embattled fund.

King wrote that his money would slash GBTC’s absorption interest to 0.49% and cleanable up the fund’s structure. The CEO besides stated that his steadfast would prosecute a redemption programme instantly and get it listed connected the New York Stock Exchange (NYSE).

GBTC’s widening discount had narrowed to 36% arsenic of property time.

Source: YCharts