Grayscale, a crypto investment firm, has filed a response to the US Securities and Exchange Commission (SEC) regarding their opposition to converting its Bitcoin Trust (GBTC) into a spot BTC ETF.

Grayscale argues that the SEC’s claim that the Chicago Mercantile Exchange (CME) provides adequate protection against fraud and manipulation in the BTC futures market but not the spot market is illogical.

The firm points out that any fraud or manipulation in the spot market would affect the price of Bitcoin futures. Grayscale’s chief legal officer also argues that the SEC is applying the “significant market test” arbitrarily and that the test is flawed.

The firm’s proposal to convert GBTC into a spot ETF satisfies the law and aims to protect investors and the public interest.

Meanwhile, Greg King, the CEO of Osprey Fund, has submitted a proposal for GBTC, offering to slash the management fee and clean up the fund’s structure, and pursue a redemption program and listing on the NYSE.

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