Judges check the SEC during oral negotiations in a Greyscale process

Judges check the SEC during oral negotiations in a Greyscale process

Grayscale and the Securities and Exchange Commission (SEC) presented their first oral arguments in court regarding the approval/rejection of a Bitcoin-Spot ETF product in the United States.

During the hearing, the judges urged the SEC to justify their justification for the simultaneous approval of several Bitcoin futures ETFs, while rejecting an equivalent spot ETF.

Spot vs futures: Who leads to whom?

in front of the United States Court of Appeals for the DC Circuit, the SEC Care The same argument as denial First of all the spot ETF application from Grayscale: that Bitcoin-Futures-ETFs offer better protection against market manipulation than spot ETFs.

"The order of the commission should be maintained, since it was the result of reasonable decision-making [and] adequately differentiated prior approval of various products," the lawyer of the SEC began in her prepared argument.

The lawyer claimed that the spot markets on which Grayscales would trade Spot-Bitcoin were "fragmented and unregulated"-in contrast to the Bitcoin Futures market, which is dealt with exclusively on the regulated chicago mercantile Exchange (CME).

In order to enable a better market supervision and better protection against market manipulation, Grayscale originally suggested to conclude an agreement on the common use of surveillance with the CME Bitcoin Futures market. However, the SEC rejected the application on the grounds that the appointment market did not precisely reflect the potential Spotmarkt manipulation - that was the core of the debate on Tuesday.

Judge Neomi Rao fought the Commission on this point and explained that the Bitcoin futures and spot markets "seem to move together to 99 % of the time".

"It seems that there are quite a few information about how these markets work together, and the SEC has not offered an explanation that the petents are wrong," she said.

The lawyer of the SEC argued that Grayscale had to provide evidence that the Spot Bitcoin prices are ahead of the futures market and that the monitoring of the Bitcoin futures market will be adequately uncovered in the spot market. According to the agency, the data that supports this remains "mixed" and "not conclusive".

GBTC pumps after dispute

The market seems to have recorded the hearing optimistically for Grayscale, whereby the shares of the Bitcoin Trust of the company were traded by $ 7.39 % to $ 12.64 that day.

per greyscale website , are its Bitcoin stocks per share $ 20.33, which means that the stock discount remains at 42.11 %. If the fund were converted into a Kassa ETF, this discount would be completely eliminated, and GBTC investors would see how their purchases increase in value.

on Monday, Alameda Research sue Grayscale, because it has not allowed customers to redeem their shares and the value of their underlying and To realize Ethereum stocks.

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