Problematic SEC Stance Sets Up Catalyst For Bitcoin And Grayscale's Bitcoin Trust

In the Teucrium approval by the SEC, Arca's surveillance-sharing agreement with the CME was relied upon to meet standards for detecting and deterring manipulation.The SEC said Arca's surveillance-sharing agreement with the CME protects the Teucrium product from manipulation attempts made "indirectly by trading outside of the CME bitcoin futures market."Both futures-backed and spot Bitcoin exchange traded products will inherently have the same, or meaningfully similar, risks from manipulation of the underlying spot markets.The approval of futures-backed products like Teucrium's, while denying those directly backed by bitcoins like Grayscale's product, creates an unfairness between issuers that is not permitted by the Exchange Act.The approval of a "nonderivative" Bitcoin ETF in the U.S. will be a watershed moment for the digital asset space, creating positive sentiment similar or stronger to what occurred in 2021 with the launch of the first derivative based products.