If Say No to Spot Bitcoin ETFS, SEC Will Hazard to Infringe Admin Procedure Act
To pass the Spot Bitcoin ETF issue is inevitable in the short future.
Two different modes of Bitcoin exchange and trade are permitted now. It makes those optimism who are in crypto career to consider that the Securities Regulatory Agency will agree the spot bitcoin ETF recently.
The first mode was built by the Investment Company Act of 1940 (40 Act). So far, most of bitcoin future ETF follow it. The second mode followed the Securities Act of 1933 (33 Act). The Teucrium Bitcoin Futures ETF that used the second mode was passed in the early of this month.
The CEO of Grayscale Investment,Michael Sonnenshein told CNBC last week that from the SCC point of view, there are 40 Act products have several protections, but 33 products [Securities Act of 1933] don’t have instead. However, those protections never solve the potential fraud and manipulation in the trade market.
He also said that because of it, they built their own opinion that they approved a 33 Act product that is Teucrium. It is totally useless for the conflict of these to thinking, but also, it told the market that the connections with the value of bitcoin spot and the futures contracts.
Sonnenshein thought:
“If the SEC can’t treat two seminar mode, that are the futures ETF and the spot ETF at the same angle. In fact, that is possible to offend the Administrative Procedure Act (APA) ,because it regulated the process of the laws’ constitution and release.”
Grayscale handed in the application that to substitute bitcoin ETF for bitcoin trust (GBTC) to SEC on Oct 19, last year. GBTC is the biggest scale product of Grayscale’. Up to April 15th, it values almost $26 billion under management. If SEC approved it, GBTC will go on the New York Stock Exchange,not the OTCQX market.
The company is waiting for the feedback of the SEC in early July. The CEO expressed that if SEC will not approve the switch of GBTC, they will have to sue the SEC.
In the discussion that if the SEC will approve the spot bitcoin ETF nor not, Sonnenshein underlined :
“It is the reality, not a choice.It would be true in the future!”
