Grayscale Investments has informed the U.S. Securities and Exchange Commission (SEC) that it sees no reason to reject the conversion of its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). The SEC was recently instructed by the D.C. Circuit Court of Appeals to review its previous denial of the conversion. Circuit Judge Neomi Rao agreed with Grayscale’s argument that their proposed product is not significantly different from existing bitcoin futures exchange-traded products (ETPs) in the U.S.

In a letter to the SEC on Tuesday, Grayscale’s legal team stated, “After the Commission has thoroughly analyzed the court’s opinion and the record, including the reasons for rejection previously stated… we believe the Commission should conclude that there are no grounds to treat the Trust differently from ETPs that invest in bitcoin futures contracts.” Grayscale also criticized the SEC’s history of rejecting applications for spot bitcoin ETFs, suggesting that any differences between these and futures-based products would have been evident in the 15 Commission orders that rejected spot bitcoin Rule 19b-4 filings even after bitcoin futures ETPs were introduced.

It is important to note that the court’s decision last week only required the SEC to review its rejection of Grayscale’s application, not to automatically approve it. Despite the confident tone of Grayscale’s letter, approval is not guaranteed at this stage.