The legal battle between SEC and Grayscale continued today as the latter slammed the former’s stance as “illogical.”
Grayscale says SEC’s stance is illogical
The legal problem between Grayscale and SEC continued after the latter denied the former’s attempts to convert their Grayscale Bitcoin Trust into a BTC ETF. The SEC initially claimed that the new ETF did not do enough to protect the average investor from “fraudulent and manipulative acts and practices.”
Based on reports, the SEC has used the same argument to decline nearly all ETFs focused on bitcoin.
“Its central premise—that the Exchange’s surveillance-sharing agreement with the CME provides adequate protection against fraud and manipulation in the bitcoin futures market but not the spot bitcoin market—is illogical.”
The regulator has already approved a couple of futures-based BTC-ETFs. Grayscale argues that any fraudulent activities associated with the Bitcoin spot markets would affect BTC futures’ prices.
Grayscale mentioned CME in their argument. Chicago Mercantile Exchange (CME) oversees instances of market fraud and manipulation that could affect asset prices. Grayscale argues that it’s illogical that the CME can protect holders of one type of ETP without protecting the other since simple spot prices will affect both.
BTC rallies as HSE approves crypto-focused ETF
BTC has been recording some poor performance over the past few months. The coin has been recording immense value plunges over recent months. However, bitcoin just recently began a strong price rally. The coin is currently trading at $19.3k, a 5.63% surge in the past 24 hours and a 13.8% surge in the past seven days.
Coinmarketcap charts, as shown above, indicate that the coin has been on a constant surge in the past seven days.
Today’s BTC price rally is connected mainly to ETF acceptance in Hong Kong. The Hong Kong Securities and Futures Commission approved BTC and ETH futures applications last December.
The HSE recently approved Samsung Asset Management’s request to list BTC ETFs. Grayscale’s continuous fights for approval and their recent argument could also contribute to the ongoing rally.