Sonnenshein argued that the SEC, whereas approving Teucrium’s utility beneath the 1933 Act, outlined the underlying market as being restricted to the Chicago Mercantile Alternate (CME)-listed bitcoin futures. Nonetheless, the CME futures are influenced by the unregulated spot market. So, the regulator can not deny spot-based ETFs, stating they’re uncovered to abuse. Grayscale’s mother or father firm Digital Forex Group can also be the proprietor of CoinDesk, which is run as an impartial subsidiary with an editorial firewall. Grayscale has utilized to transform its Bitcoin Belief right into a spot-based ETF.