Last night our attorneys at Davis Polk sent a letter to the SEC arguing that approval of #Bitcoin futures-based ETFs, but not #Bitcoin spot-based ETFs, like $GBTC, is “arbitrary and capricious,” and therefore in violation of the Administrative Procedure Act (APA).
We just filed @Grayscale Ethereum Trust's amended Form 19b-4 filing. This is an important step in our effort to uplist $ETHE to NYSE Arca.
Investors want and deserve access to #Ethereum in the form of a spot Ethereum ETF and we believe the case is just as strong as it was for
1/ Recently, there’s been a lot of chatter about spot #Ethereum ETFs. I personally am not deterred by it and believe the ETFs should be approved. But right now I want to talk about how I think perceived “lack of SEC engagement” should be viewed at this point:
@Grayscale will soon file the next brief in our suit challenging SEC's decision to deny $GBTC conversion to a spot #Bitcoin#ETF. The case is moving swiftly. While timing is uncertain, oral arguments may be as soon as Q2. Final decision in DC Cir. App. Court could come by Fall.🧵
"If the SEC loses its case against @Grayscale, as we expect, the path of least resistance would be a wave of simultaneous approvals for all spot #Bitcoin ETF applicants -- including Grayscale and the other eight active filings." @NYCStein in @Bloomberg today. Cc @EricBalchunas
Our attorneys at @DavisPolkReg have sent a new letter to the SEC updating our arguments that approval of #Bitcoin futures #ETFs, but not #Bitcoin spot #ETFs like $GBTC would be “arbitrary and capricious” and “unfair discrimination” in violation of the APA and Exchange Act.
This is a new argument in the context of $BTC ETFs that wasn’t possible until the approval of the first #Bitcoin futures-based #ETF and subsequent rejection of yet another spot-based ETF. So, what is this new argument?:
“Grayscale last week sued the SEC for violating the APA. It has a strong argument that the SEC’s disparate treatment of spot and futures bitcoin ETPs contravenes the law’s requirement that regulators treat similar products and parties the same.”
The APA requires the SEC to treat *like* situations *alike* absent a reasonable basis for different treatment. This means the SEC must treat similarly situated investment products similarly.
