Grayscale Is Suing The SEC For Denying Its Spot Bitcoin ETF

Grayscale Investments announced it volition writer the U.S. SEC for denying its exertion to person its money into a spot bitcoin ETF.

• Grayscale Investments is suing the SEC for denying its exertion to person GBTC into an ETF.
• The filing was submitted yesterday evening by the erstwhile apical ineligible caput that served successful the Obama medication arsenic U.S. solicitor general.
• Over 11,000 remark submissions were sent to the SEC by investors, 99% of which were affirmative towards the modulation of GBTC into an ETF.

Grayscale Investments, 1 of the world’s largest integer plus managers, is suing the U.S. Securities and Exchange Commission (SEC) aft the regulator denied its exertion to person its flagship bitcoin fund, GBTC, into an exchange-traded money (ETF), per a press release

“As Grayscale and the squad astatine Davis Polk & Wardwell person outlined, the SEC is failing to use accordant attraction to akin concern vehicles, and is truthful acting arbitrarily and capriciously successful usurpation of the Administrative Procedure Act and Securities Exchange Act of 1934,” said Donald B. Verrilli Jr., Grayscale's elder ineligible strategist and erstwhile U.S. solicitor general.

Verrilli was announced arsenic a caller subordinate of Greyscale’s ineligible squad connected June 7, arsenic the institution had been preparing for a worst-case scenario. Grayscale besides began a missive run with investors wherever implicit 11,400 full submissions were sent to the SEC, 99% of which were successful favour of the fund’s modulation to an ETF.

“Through the ETF exertion reappraisal process, we judge American investors overwhelmingly voiced a tendency to spot GBTC person to a spot Bitcoin ETF, which would unlock billions of dollars of capitalist superior portion bringing the world’s largest Bitcoin money further into the U.S. regulatory perimeter,” said Michael Sonnenshein, Grayscale’s CEO.

Grayscale announced its intentions to modulation the money into an ETF successful April 2021. A ceremonial petition to bash truthful was past submitted aboriginal that year, successful October. Since then, Grayscale has mounted galore efforts to decently pass the nationalist of its intentions and to conscionable each regulatory requirements.

While the SEC has a 240-day deadline to marque decisions connected these matters, which would person ended July 6, it tin contented decisions early. Even though immoderate whitethorn perceive this quality arsenic disheartening, the forced litigation of the substance could make a lasting precedent for the ecosystem that mightiness beryllium beneficial successful the long-term.