Grayscale Urges SEC To Convert Bitcoin Trust To ETF After Approval Of Teucrium Application

Futures approval of bitcoin-ETF by Teucrium is the basis for a similar decision on Grayscale’s conversion application GBTC to an exchange-traded fund. The company made the announcement in a letter to SECwrites The Block.

“[…] there is no reason to consider spot bitcoin products differently than bitcoin-based futures products.”the document says.

In early April, the SEC approved product from Teucrium. It complies with the provisions of the Securities and Exchange Act of 1934 in the same way as the statement from Grayscale.

Former Commission Chairman Gary Gensler declared that for the possible approval of exchange-traded funds based on the first cryptocurrency, their underlying assets must be bitcoin futures CME.

Also Read: The Securities and Exchange Commission (SEC) risks violating the Administrative Procedure Act

He also mentioned filing an application under the Investment Company Act of 1940. Subsequently, on its basis, the regulator allowed trading in bitcoin-ETF futures from VanEck, Valkyrie Investments and Pro Shares.

“Teucrium’s product approval confirms that the 1940 Act is not the basis for the Commission’s verdict. Any fraud or manipulation in the underlying market will equally affect both products [cпотовый и фьючерсный биткоин-ETF]. The existence of these risks cannot be used as a justification for withholding approval of one product after approval of another.”— Grayscale lawyers noted.

Recall Grayscale sent an application to convert a bitcoin trust into an ETF in October 2021. In February 2022, the SEC postponed the decision until July 6th.

Previously in the company declared their readiness to sue with the department in case of refusal to convert GBTC into an exchange-traded fund based on the first cryptocurrency.

Poll conducted in April on behalf of Nasdaq showed that 72% of financial advisers surveyed approved of investing in a spot bitcoin ETF.