• Home
  • Bitcoin
  • Grayscale Bitcoin Trust to sue U.S. SEC for rejecting its ETF

Grayscale Bitcoin Trust to sue U.S. SEC for rejecting its ETF

Grayscale Bitcoin Trust sued the U.S. S.E.C. for rejecting its application for a bitcoin ETF.
| CryptoPress
sec usa

Grayscale Bitcoin Trust, the first publicly traded bitcoin investment trust, sued the U.S. Securities and Exchange Commission for rejecting its application for a bitcoin exchange-traded fund (ETF).

The SEC has been reluctant to approve any spot ETF, citing, among other issues, concerns about market manipulation.

Grayscale Bitcoin Trust (GBTC) has long wanted to become an ETF, and is arguing that the SEC is acting “arbitrarily” and “capriciously.”

GBTC filed a lawsuit against the SEC on Monday, saying its decision to reject the ETF was “arbitrary and capricious.” In particular, the trust says there were two reasons for this: first, that there was no evidence that bitcoin markets were susceptible to manipulation; and second, that there were no safeguards in place to prevent market manipulation.

They recruited Donald B. Verilli Jr., a former Solicitor General of the United States, to help them with their legal position.

“Through the ETF application review process, we believe American investors overwhelmingly voiced a desire to see GBTC convert to a spot Bitcoin ETF,” Michael Sonnenshein, CEO of Grayscale, said in a statement. “This would unlock billions of dollars of investor capital while bringing the world’s largest Bitcoin fund further into the U.S. regulatory perimeter.”

As a direct result of the judgment made by the SEC, GBT share prices have fallen to an all-time low and are now selling at a discount of 35%. Regardless of what happens next, a sizable portion of the cryptocurrency community has been mobilized and brought together as a result of the denial and the accompanying litigation. Buckle up, people.

Grayscale wants an ETF, but what exactly is it?

With an exchange-traded fund (ETF), investors may purchase shares of a company on the open market without really owning the assets they’re investing in. The Securities and Exchange Commission (SEC) ultimately approved a Bitcoin futures ETF in October, which provides derivative contracts that enable investors to bet on Bitcoin’s future value. A Bitcoin spot ETF, which would be connected to the current price of Bitcoin, has not yet been approved by the SEC.

Currently, the Grayscale Bitcoin Trust has $12.9 billion under its care, according to Grayscale. Since February 2021, Grayscale Bitcoin Trust (GBTC) shares have traded at a discount to the value of the Bitcoins owned by Grayscale.

Grayscale Bitcoin Trust’s “discount” will be corrected, and the investment company will be able to charge reduced fees because of the change to a spot Bitcoin ETF.

File:U.S. Securities and Exchange Commission headquarters.JPG” by AgnosticPreachersKid is licensed under CC BY-SA 3.0.

Related articles

More Articles


Coinbase rises strongly by offering staking 

Coinbase Global (COIN 7.22 percent) jumped as much as 11 percent and was trading 10.6 percent higher. Tuesday saw the crypto market turn bullis…
M2 - crypto

Cryptocurrency M2 Money Supply

It may seem paradoxical that the movement of cash and the price of bitcoin (BTC-USD) are related, but historical evidence tends to indicate that t…
ark invest

ARK Invest sells 1.4 million Coinbase shares amid an SEC investigation

The third-biggest stakeholder of the largest cryptocurrency exchange in the United States sold roughly $75 million worth of more than 1.41 million…
(Visited 11 times, 1 visits today)
© Cryptopress. All rights reserved.