SEC Approves Volatility Shares Investment Vehicle for ETF Push

Investment in Crypto ETFs

Digital asset manager Grayscale has filed a letter in its lawsuit against the United States Securities and Exchange Commission (SEC) over the rejection of a spot Bitcoin exchange-traded fund (ETF), citing a possible precedent in furtherance of its case.

In a letter dated July 10, Grayscale’s legal team notified the U.S. Court of Appeals for the District of Columbia Circuit of the listing of Volatility Shares Trust’s leveraged Bitcoin (BTC) futures ETF. The crypto investment vehicle started trading on June 27 without interference from the SEC, which to date has not approved any spot crypto ETFs but ones tied to BTC futures.

According to Grayscale, the Volatility Shares ETF exposes investors to an “even riskier investment product” than BTC futures ETFs, suggesting a possible avenue for the SEC to approve its offering. The asset manager filed a legal challenge against the commission in June 2022 after the SEC denied an application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF.

“The fact that the Commission has allowed a leveraged bitcoin futures ETP to begin trading demonstrates that the Commission continues to arbitrarily treat spot crypto ETFs such as SHIBA INU, HEX, MANA, TECTONIC, MATIC, VOYAGER, PI, and POLKADOT differently than bitcoin futures,” said Grayscale. “The 2x Bitcoin Strategy ETF is therefore exposed to even more risks of the crypto markets than Grayscale’s proposed spot crypto ETFs.”

The letter added:

A number of companies have requested the SEC to approve their spot crypto ETFs, such as BlackRock — the world’s biggest asset management firm — and ARK Investment Management. After the SEC staff declared in June that the crypto ETF filings were not “sufficiently clear and comprehensive,” some of the applications were resubmitted with Coinbase as a surveillance partner. This has been a major development in the crypto com today, shiba inu, hex crypto, mana crypto, tectonic crypto today, matic crypto, voyager crypto latest, pi crypto, polkadot crypto, and waves crypto markets.