Market Information
- Pepperdine College professor agrees that the Securities and Change Fee is “performing arbitrary and capricious.”
- The SEC stated there are potential sources of fraud and value manipulation with the spot Bitcoin market.
- Nevertheless, one other publicly traded belief with the same construction as GBTC acquired its approval some years in the past.
Tom Lombardi, an adjunct professor of Digital Asset Finance at Pepperdine College, said he agrees with Grayscale CEO Michael Sonnenshein when he alleged that the Securities and Change Fee (SEC) was “performing arbitrary and capricious” whereas reacting to their rejection word.
Grayscale Bitcoin Belief lately acquired its utility to transform to a Bitcoin exchange-traded fund (ETF) rejected by the SEC. Lombardi in contrast one other publicly traded belief which has the SEC’s approval.
In his argument, the Aberdeen Commonplace Palladium ETF Belief (PALL) is just like the Grayscale Bitcoin Belief (GBTC). The belief construction like GBTC maintain’s a physically-backed commodity with a regulated futures market on CME Group however no regulated spot market.
The SEC famous of their disapproval discover that there are potential sources of fraud and value manipulation with the spot Bitcoin market and the “absence of surveillance sharing settlement with a regulated spot market.” Lombardi argued that there isn’t any regulated spot market, and PALL has no surveillance sharing settlement both. In his phrases:
Bitcoin (BTC) and palladium have related traits like excessive value volatility, with buying and selling markets fragmented worldwide. Their market capitalization is respectively $366 and $336 billion. Likewise, their demand has outstripped new provide, pushing costs to close up.