The Securities and Exchange Commission has reiterated its refusal to approve Grayscale’s proposal to launch a bitcoin ETF. The SEC says such products are prone to fraud and manipulation, court records show, and reported by the Financial Times. Grayscale claimed over the summer that the SEC was using an unfair double standard by allowing bitcoin futures ETFs but rejecting proposals for spot bitcoin ETFs. The SEC’s initial response to Grayscale’s lawsuit was that it had approved bitcoin futures ETFs because the Chicago Mercantile Exchange closely monitors them. Spot bitcoin ETFs, meanwhile, lack that level of federal oversight.
