The SEC submitted a legal brief stating that the decision to deny the conversion of GBTC to a spot ETF is "reasonable."

ChainCatcher news, cryptocurrency asset management company Grayscale Investments stated that the U.S. Securities and Exchange Commission (SEC) has submitted its first legal brief regarding the lawsuit filed by Grayscale after its application to convert GBTC into a spot Bitcoin ETF was rejected. In the 73-page response brief, the SEC argues that its rejection is "reasonable, well-explained, and supported by substantial evidence."

The SEC stated, "While two CME Bitcoin futures ETPs have been approved, there is no contradiction in the SEC not approving Grayscale's spot ETP." The SEC noted that futures and spot Bitcoin funds are "fundamentally different products."

In response, Grayscale published an article reiterating its previous points: 1. The SEC has created an unfair competitive environment for investors by approving Bitcoin futures ETFs while continuously rejecting spot Bitcoin ETFs. 2. The SEC failed to comply with the Administrative Procedure Act (APA) and the Securities Exchange Act of 1934 when approving Bitcoin futures ETFs and rejecting spot Bitcoin ETFs. 3. The SEC has not clarified the basis for its different treatment of spot Bitcoin ETFs and Bitcoin futures ETFs—indeed, they have created a "significant market test," leading to inconsistent treatment of each product type. Grayscale stated that its next brief will be submitted by January 13 of next year, with the final brief to be submitted by February 3. (source link)