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Grayscale Chief Legal Officer Says Bitcoin Litigation Could Take Two Years ETF

Grayscale Chief Legal Officer Says Bitcoin Litigation Could Take Two Years ETF

Asset management firms continue to fight for the creation of a bitcoin spot exchange traded fund (ETF) in the United States, and regulators are still skeptical about the idea.

Craig Salm, chief legal officer of the Grayscale asset manager, discussed the company’s legal case at the U.S. Securities and Exchange Commission (SEC) regarding the conversion of a Bitcoin Grayscale Trust (GBTC) into a Bitcoin ETF.

Mr Salm explained the cornerstone of Grayscale’s case against the SEC in answering frequently asked questions about the law. According to the law scholar, if the SEC refuses to recognize Bitcoin ETFs spot separates futures and spot trading for Bitcoin ETFs and draws a distinction between the two.

However, Grayscale confirms that there is no correlation between the differences and Bitcoin ETF approvals, because Bitcoin futures and spot ETF prices are based on the same bitcoin spot markets.

Therefore, Grayscale’s legal team believes that the disallowance of Bitcoin spot ETFs among futures ETFs could be considered “unfair discrimination”. Mr. Psalm states that this violates a number of laws, including the Administrative Procedure Act and the Exchange of Securities Act 1934.

After explaining Grayscale ‘s arguments, Psalm also answered the most common question among people after the progress of the law: when will the Bitcoin ETF spot be finally approved?

According to Psalm, although there is no certainty as to the exact timeline, due to many factors, it is estimated that it could take between one and two years.

Despite the expected length of the trial, Mr Salm said Grayscale firmly believes in his case and is confident that the courts will rule in his favor.

Read also: Grayscale Reports 99% of CSS Comment Letters support Bitcoin Cash ETF

When Grayscale issued its legal challenge to the SEC, members of the public gathered behind the company. Many were disappointed by the decision to disallow the Bitcoin ETF spot while endorsing an ETF that allows bitcoin to be shortened. A Twitter user claimed that the SEC’s decision was intended to “stifle the price of bitcoin”.

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