Grayscale plans legal alternative over Bitcoin ETF

TL; DR Breakdown

• Grayscale could explore legal options against SEC
• The company is looking at all its options
• Grayscale wants the SEC to approve its application

Grayscale boss Michael Sonnenshein has announced that the firm is seeking alternative measures should the United States SEC refuse to approve its spot Bitcoin ETF. The United States SEC has been vocal enough on its thoughts on that type of exchange-traded funds over the years. This has culminated in the SEC not approving at least one of the spot Bitcoin ETFs put forward since 2013.

Sonnenshein says the company is looking at all its options

Speaking at a Bloomberg interview, Sonnenshein made his frustrations known over the refusals that companies submitting applications have had to put up with from the SEC. In the interview, a presenter asked the Grayscale boss if he would seek another alternative should the regulator deny the ETF. Notably, the alternative might involve the Administrative Procedure Act.

In his reply, Sonnenshein conceded that Grayscale is exploring all areas as they want to continue advocacy on behalf of investors across the crypto market. The SEC is presently on a timeline with its deadline to announce a verdict on the product on July 6. Although the application was filed in October 2021, the verdict should have been communicated in February but was met with a delay pushing it to the latest date.

Grayscale wants to fight for its investors

Sonnenshein mentioned that the company has been working overtime to ensure that the ETF will be approved. He wants investors and traders to know that they have them in their hearts and will continue to fight for them. The first announcement came in October after the firm released a statement citing the submission of its Bitcoin ETF application. The SEC failed to give Grayscale a reply indicating approval, citing various issues in the market, one of which it repeated last month.

Following this, the body consulted the public over the company‘s changes to its application, with the consensus seeing about 95% of the responding party support Grayscale. During the period, Grayscale urged investors and the public to participate in the consensus, posting the message on a section of its website. According to Sonnenshein, the Grayscale Bitcoin Fund has investors across states in America, with about 800,000 individuals waiting to convert their accounts to an ETF after approval by the SEC.

Sonnenshein mentioned that investors were particularly pleased with the release of its futures ETF but would be happier with a spot ETF. The Grayscale boss also said that two aspects were the trigger to register with the SEC: the Biden administration order and supoort crypto exchanges have gotten from the SEC.