Grayscale says recent events will not affect GBTC conversion case against SEC

Grayscale’s main ineligible serviceman Craig Salm said connected Jan. 12 that helium does not expect the caller spate of events successful the crypto abstraction to interaction its lawsuit against the SEC.

Recent crypto events won’t interaction Grayscale’s case

According to him, the suit is about “determinations connected questions of law.” He added that contempt the SEC’s reluctance and perceptions of the crypto industry, “this is simply a ineligible lawsuit astir just and adjacent attraction nether the law.”

Salm said:

“[Recent] events and speculation surrounding Terra/LUNA, 3AC, Celsius, Voyager, FTX, Alameda, BlockFi, Genesis Capital, Gemini, DCG, oregon anyone other are not applicable to the eventual question the Court volition person to answer.”

He said the lawsuit is to find if the SEC acted arbitrarily and capriciously and discriminated against issuers successful denying GBTC conversion to a spot ETF. At the aforesaid time, it had approved ETFs that clasp futures.

GBTC conversion to spot ETF could assistance adjacent discount

Salm tweeted that the suit was “most important” for the implicit 850,000 GBTC shareholders.

According to him, converting GBTC to a spot BTC ETF volition “effectively adjacent the existent discount to NAV and unlock implicit $4 cardinal of value.” 

“An ETF is unquestionably the champion semipermanent mode for GBTC to way the worth of its Bitcoin.”

Meanwhile, if their efforts were to fail, Salm said the steadfast would see alternative solutions to the situation. This included a tender connection for a information of GBTC shares taxable to the SEC’s approval.

Salm added:

“Anyone telling you GBTC tin simply redeem shares contiguous is astir apt not a lawyer, and doesn’t recognize the complexities of securities laws and its tender offers rules (distinct from Reg M). Just arsenic determination are approvals needed to person GBTC to an ETF and run an ongoing redemption, determination are different chiseled approvals needed for GBTC to reasonably instrumentality superior to shareholders successful different ways, specified arsenic done a tender offer.”

Calls for much assemblage support

Salm urged the crypto assemblage to enactment its lawsuit due to the fact that a spot Bitcoin ETF would further unfastened up entree to the integer asset. He said his steadfast was warring for BTC’s aboriginal and urged anyone “long Bitcoin” to enactment its case.

Meanwhile, helium noted that the steadfast already enjoys a level of enactment from the crypto community. According to him, Grayscale got 5 amicus briefs successful enactment of its opening motion.

Besides that, the steadfast received a record-breaking 11,600 remark letters supporting its ETF exertion process.

The station Grayscale says caller events volition not impact GBTC conversion lawsuit against SEC appeared archetypal connected CryptoSlate.