The Chief Executive Officer (CEO) of Grayscale Investments has outlined how the Securities and Exchange Commission (SEC) may violate the Administrative Procedure Act if it does not approve a spot bitcoin exchange-traded fund (ETF).
The Securities And Exchange Commission (SEC) Approval Of A Spot Bitcoin ETF Is A Matter Of Time And Not A Probability
The Securities and Exchange Commission (SEC) of the United States has officially validated two different bitcoin futures exchange-traded funds (ETFs) structures. This issue has fueled speculation in the cryptocurrency market that the Securities and Exchange Commission is getting closer to authorizing a spot bitcoin ETF.
First, the Investment Company Act of 1940 is applied to the first structure (40 Act). The majority of bitcoin futures exchange-traded funds (ETFs) proposed to date have been filed under this Act. The Securities Act of 1933 is used in the second instance (33 Act). The Teucrium Bitcoin Futures ETF was validated earlier this month, using the latter form. It was was the first time something of it’s nature was approved.
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During an interview with CNBC earlier this week, Grayscale Investments CEO Michael Sonnenshein stated, “From the SEC’s perspective, some protections contained in the 40 Act were not in the 33 Securities Act 1933. Despite this contrast, these protections did not attend to the SEC’s worry over the underlying Bitcoin (BTC) market and the tendency for fraud or confusion.
Micheal went on to say that ” Now that they have evolved their thinking and validated a 33 Act product with Teucrium renders that argument invalid and communicates to the connection between bitcoin (BTC) futures and the cardinal bitcoin (BTC) spot markets that give value to the futures contracts. Sonnenshein expressed his thoughts as follows:
“A breach of the Administrative Procedure Act may be established on the ground that the SEC cannot examine two similar concerns, which are the spot ETF and the futures ETF, in the same light.”
In the United States, the Administrative Procedure Act (APA) regulates how federal agencies to design and adopt regulations. Grayscale filed with the Securities and Exchange Commission (SEC) on October 19, 2017, to change its flagship bitcoin (BTC) trust (GBTC) to a bitcoin (BTC) exchange-traded fund (ETF). According to the company, Grayscale’s flagship product, GBTC, has about $26 billion in assets under management as of April 15. If the Securities and Exchange Commission approves the application, GBTC will be listed on the New York Stock Exchange rather than the OTCQX.
The SEC is to answer the corporation in early July with a decision on whether or not the application will be accepted. GBTC’s CEO has intimated that the company may choose to sue the Securities and Exchange Commission if the government does not provide approval for the conversion. While commenting on whether or not the SEC will approve a spot bitcoin ETF, Sonnenshein made the following point: In our perspective, it is a matter of when rather than if this will happen.