BeInCrypto – Crypto investment firm Grayscale filed a response to the SEC’s opposition to converting its Trust Fund (GBTC) into a BTC ETF on January 13.
The Bitcoin investment firm writes that the SEC’s argument that… Chicago Mercantile Exchange (CME) Providing adequate protection against fraud and manipulation in the BTC futures market but not in the spot market is a no-brainer.
Grayscale says market manipulation will affect futures contracts
According to the company, Any fraud or manipulation in the spot market would affect the price affiliate. Grayscale introduced the relationship between the two products and added how an action in one might affect the other.
“Either CME monitoring can detect fraud in the spot market affecting both forward and future ETPs, or monitoring cannot for any type of ETP.”
The SEC arbitrarily applied the “favorable market test”
Grayscale Legal Director, Craig Salem further noted that the SEC conducted a “feasible market test”. Salem said the financial regulator is quietly applying the Bitcoin ETF futures test. However, the same test is applied “strictly for spot ETFs to arrive at a performance-based conclusion”.
7/ Our proposal to convert $GBTC into a spot #bitcoin #ETF meets the requirements of the Exchange Act because it is designed to prevent fraud and manipulation, while protecting investors and the public interest.
— Craig Salem (@CraigSalm) January 13, 2023
“The test itself is beyond the SEC’s legal authority and is arbitrary and unreasonable. The test is deeply flawed, essentially rewarding BTC futures for exposure to two types of risk, while penalizing Bitcoin spot for being subject to only one of those risks,” Salem said.
The legal officer concluded that the company’s offer to transfer its trust to the ETF Cash is in accordance with the law. He added that the ETF is designed to prevent fraud and manipulation while protecting investors and the public interest.
Grayscale is owned by the embattled cryptocurrency group Digital Currency Group (DCG).
Osprey Funds is making a proposal for GBTC
within, Greg King, CEO, Osprey Fund, submitted a proposal to GBTC. The CEO wrote an open letter Jan. 13 to DCG CEO Barry Silbert, asking him to name his fund as the disputed fund’s sponsor.
King wrote that his fund will reduce GBTC management fees to 0.49%. Clean up the background structure. The CEO also mentioned that his company will pursue the redemption program immediately and list it on the New York Stock Exchange (NYSE).
Discount The increased share of GBTC decreased to 36% At the conclusion of this edition.
Post Grayscale in response to SEC amid proposal for GBTC first seen on BeInCrypto.
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