Market News
- Pepperdine University professor agrees that the Securities and Exchange Commission is “acting arbitrary and capricious.”
- The SEC stated there are doable sources of fraud and value manipulation with the spot Bitcoin market.
- However, one other publicly traded belief with an identical construction as GBTC bought its approval some years in the past.
Tom Lombardi, an adjunct professor of Digital Asset Finance at Pepperdine University, said he agrees with Grayscale CEO Michael Sonnenshein when he alleged that the Securities and Exchange Commission (SEC) was “acting arbitrary and capricious” whereas reacting to their rejection be aware.
Grayscale Bitcoin Trust just lately bought its software 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 Standard Palladium ETF Trust (PALL) is much like the Grayscale Bitcoin Trust (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 doable sources of fraud and value manipulation with the spot Bitcoin market and the “absence of surveillance sharing agreement with a regulated spot market.” Lombardi argued that there isn’t a 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.
