When Grayscale’s Bitcoin Spot ETF application was denied, the company took the matter to court

Grayscale Investments, a digital asset management business, is challenging the SEC’s ban on Spot Bitcoin exchange-traded funds in court.

To challenge the SEC’s denial of the spot Bitcoin ETF application, Grayscale, a prominent cryptocurrency startup, has written to the DC Circuit Court of Appeals.

The business claims the SEC’s approval of a Bitcoin futures ETF with leverage while rejecting Bitcoin spot ETFs is arbitrary.

The goal of a newly authorised leveraged BTC futures ETF by the SEC is to use borrowed money to produce daily returns that are twice as high as those of a BTC futures index.

The business claims it is not opposed to leveraged futures products per such, but rather objects to the SEC’s inconsistent and unjust clearance procedure.

The SEC denied Grayscale’s application for a spot Bitcoin ETF in 2020 on the grounds that the Bitcoin market lacked enough regulation and transparency. Later, it filed a lawsuit against the SEC, claiming that the agency had broken the law by treating distinct Bitcoin goods with different regulations.

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