TechFlow news — On April 7, Grayscale CEO Michael Sonnenshein tweeted: "It's unfair that the SEC has allowed the launch of Bitcoin futures-based ETFs, yet opposes converting Grayscale's Bitcoin Trust (GBTC) into a spot ETF." He explained: Prior to today, there were three Bitcoin futures-based ETFs trading in the U.S.: BITO, XBTF, and BTF. All are registered under the Investment Company Act of 1940 and claim to offer better investor protections. Last week, the SEC continued to reject Ark Capital’s Bitcoin spot ETF application, citing different standards under the 1940 Act for those seeking registration under the Securities Act of 1933. However, today’s approval of Teucrium’s Bitcoin futures ETF was granted under the 1933 Act, not the 1940 Act. For reference, GBTC’s conversion to a spot Bitcoin ETF also falls under the standards of the 1933 Act. Today, in approving Teucrium’s application under the 1933 Act, the SEC cleverly defined the 'market' as CME and the 'underlying asset' as CME Bitcoin futures. Yet CME's Bitcoin futures market is itself a cash-settled market based on the spot Bitcoin price. Therefore, if the SEC is satisfied with a Bitcoin futures ETF, they must also be satisfied with a spot Bitcoin ETF. They can no longer use the 1940 Act as a distinguishing factor."
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