Grayscale Investments has written to the Securities and Exchange Commission disputing the rejection of VanECK’s spot ETF application, saying it had no basis.
In the letter to the regulator’s Vanessa Countryman dated November 29, the firm wrote that the commission had already approved three bitcoin futures ETFs and had no reason to reject the asset’s spot ETFs.
Grayscale argues that if the SEC could approve the investment in the derivative markets for an asset, it cannot reject the investment in the asset itself.
The letter accuses the commission of breaching the Administrative Protections Act by treating the two funds differently.
Grayscale applied to list GBTC as a Bitcoin spot ETF in October and is pending a decision towards the year’s close. SEC decided to reject a similar application by VanEck on November 12, triggering the response.
The regulator has cited the inconsistency with the requirements of the Securities and Exchange Act of 1934 as grounds to throw out VanEck’s application. Grayscale had anticipated listing the Bitcoin spot ETF before July next year but now remains unclear.