Bitcoin crashes under $20K as SEC rejects Grayscale spot ETF application

Bitcoin (BTC) fell beneath $20,000 aft the SEC rejected Grayscale’s exertion to crook its Bitcoin spot into a spot Bitcoin ETF.

BTC was trading astatine $18,934 astatine its lowest pursuing the quality but has since marked a tiny betterment and was trading astatine $19,047 arsenic of property time, according to CryptoSlate data.

Source: TradingView

SEC rejects Grayscale and Bitwise application

Per disposable information, the committee besides rejected the Bitwise application, continuing its civilization of rejecting spot Bitcoin applications. Both Grayscale and Bitwise filed their exertion successful October 2021.

The SEC rejection of Grayscale’s ETF was contempt the effort of the steadfast to generate nationalist enactment for its application.

In its filing, the SEC said it rejected the connection due to the fact that it did not conscionable the standards to support investors and nationalist involvement and forestall fraudulent and manipulative practices.

It besides added concerns astir the lack of a surveillance sharing statement betwixt a “regulated marketplace of important size” and a regulated speech and the relation of Tether successful the Bitcoin ecosystem.

This is not the archetypal clip the SEC is rejecting a spot Bitcoin ETF exertion due to the fact that of the supra reasons.

The SEC has rejected spot Bitcoin ETF applications from Fidelity, Valkyrie, and SkyBridge. However, the committee has been much unfastened to approving Bitcoin futures ETF and approved 2 this year.

Grayscale sues SEC

Grayscale has made existent of its words to writer the committee if it rejects its ETF application.

We’ve filed a suit against the SEC. $GBTC

— Sonnenshein (@Sonnenshein) June 30, 2022

The steadfast has sued the SEC and asked for a reappraisal of the commission’s determination by the US Court of Appeals for the District of Columbia Circuit.

The concern steadfast would apt argue that since the SEC has approved akin products successful the past, it indispensable o.k. the application.

Grayscale CEO Michael Sonnenshein said successful a statement:

Grayscale supports and believes successful the SEC’s mandate to support investors, support fair, orderly, and businesslike markets and facilitate superior enactment – and we are profoundly disappointed by and vehemently disagree with the SEC’s determination to proceed to contradict spot Bitcoin ETFs from coming to the US market.

The station Bitcoin crashes nether $20K arsenic SEC rejects Grayscale spot ETF application appeared archetypal connected CryptoSlate.