The Securities and Exchange Commission (SEC) may be forced to approve spot bitcoin (BTC) exchange-traded-fund (ETF) applications from several asset managers after a federal court said the regulator must review its rejection of Grayscale’s attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF, according to a report from JPMorgan (JPM) on Friday. The court argued that fraud and manipulation in the spot market posed a similar risk to both futures and spot products because the “spot bitcoin market and CME bitcoin futures market are so tightly correlated.” The court also said that the SEC’s denial of Grayscale’s application was “arbitrary and capricious” because the Commission failed to explain its different treatment of similar products, such as futures-based bitcoin ETFs.
Grayscale and CoinDesk are both owned by Digital Currency Group (DCG).
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | JPMorgan, SEC, Nikolaos Panigirtzoglou, DCG, Grayscale |
| Companies | Digital Currency Group (DCG), JPMorgan (JPM), CME, Grayscale Bitcoin Trust (GBTC), Securities and Exchange Commission (SEC) |
| Currencies | Ethereum, Bitcoin, US Dollar |
| Securities | None |
