Grayscale legal officer says Bitcoin ETF litigation could take two years
Grayscale claims that there is no correlation between spot Bitcoin ETFs and futures, as prices are based upon the same spot Bitcoin markets.
As the US regulators remain skeptical, asset management firms are continuing to push for a spot Bitcoin ( Bitcoin) exchange traded fund (ETF).
Grayscale’s chief legal officer, Craig Salm, spoke out about the lawsuit filed by the United States Securities and Exchanges Commission regarding the conversion of Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF.
Salm explained Grayscale’s arguments against the SEC and answered the most frequently asked questions about the lawsuit. The legal officer stated that the SEC’s refusal of spot Bitcoin ETFs separates spot trading and futures, and draws a distinction.
Grayscale claims that there is no correlation between the Bitcoin ETF approvals. Both futures and spot Bitcoin ETF price are based upon the same spot Bitcoin markets.
Grayscale’s legal team considers that disapproval of spot Bitcoin ETFs while approval is given to Bitcoin futures ETFs, “unfair discrimination.” Salm claimed that this is a violation of several laws, including the Administrative Procedure Act (AKA) and the Securities Exchange Act of 1934 (SXA).
Salm answered the most frequent question of those following the litigation’s developments: When will the spot Bitcoin ETF be approved?
Salm estimates that while it is not certain when the timing will occur due to many factors, it could take between one and two years.
Salm stated that Grayscale believes strongly in its arguments, and that it is confident that the courts will find in Grayscale’s favor, despite the length of the suit.
Grayscale’s legal challenge to SEC was met with community support. Many were disappointed by the decision to disapprove a spot Bitcoin ETF, while approved an ETF that shorts Bitcoin. One Twitter user claimed that the SEC’s move is intended to “suppress Bitcoin’s price.”
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