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So far, the Securities and Exchange Commission has only authorized Bitcoin futures ETFs.

Grayscale has restarted its months-long effort to persuade the Securities and Exchange Commission to allow the crypto investing firm’s $40 billion Bitcoin Trust to be converted into an exchange-traded fund (ETF).

ETFs are securities that bundle securities such as stocks or commodities and allow investors to acquire shares of these bundles without actually owning the assets. Bitcoin ETFs are classified into two types: Bitcoin futures (derivative contracts that speculate on the price of the cryptocurrency) and Bitcoin spots (which operate on the current price of Bitcoin).

Grayscale is looking to make the last option, a Bitcoin spot ETF. It would be the first of its sort: Though the SEC has hitherto supported four Bitcoin fates ETFs, it hasn’t endorsed a solitary Bitcoin spot ETF. (Neither Grayscale nor the SEC quickly answered demands for input from Decrypt.)

In a letter sent last week to the SEC, seen by the Financial Times, Grayscale’s lawyers contended how the administrative office endorsed the fourth Bitcoin fates ETF, Teucrium, recently opened the entryway for a Bitcoin spot ETF.

Grayscale’s lawyers contended that the initial three Bitcoin prospects ETFs were supported by the SEC under the Investment Company Act of 1940. Nonetheless, the Teucrium ETF was supported under the Securities Act of 1933 — a first. The SEC had recently expressed that the 1940 demonstration offered specific financial backer insurances not covered by the 1933 demonstration. The ramifications are that because Bitcoin spot ETFs couldn’t be recorded using the 1940 demonstration, they offered deficient financial backer assurance.

Grayscale’s lawyers seized on Teucrium’s approval under the 1933 act, saying,

“We believe the Teucrium order confirms the fundamental point … [that] when it comes to approving [exchange traded products], there is no basis for treating spot bitcoin products differently from bitcoin futures products.”

Grayscale’s ETF application is expected to be decided by the SEC in July. Grayscale CEO Michael Sonnenshein has warned that he will consider suing the SEC if the deal is rejected. Sonnenshein tweeted shortly after the Teucrium ruling was issued that the SEC “can no longer properly claim the ’40 act as the determining element” when it comes to the supposed distinction between Bitcoin futures ETFs and Bitcoin spot ETFs.

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