Grayscale Bitcoin Trust Share Price Rallies Before SEC Lawsuit

Grayscale Bitcoin Trust News: Time and again, Grayscale made it clear that the U.S. Securities and Exchange Commission (SEC) has been unfair in not approving its spot Bitcoin ETF application. The company is reiterating ahead of the SEC case arguments, amid much hype in the crypto market, that the regulatory agency has been contradictory in its views when it comes to spot vs futures Bitcoin ETF. Meanwhile, the Grayscale Bitcoin Trust (GBTC) share price is on an upward curve ahead of the arguments in the Grayscale Vs SEC lawsuit.

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In June 2022, immediately after the US SEC rejected Grayscale’s application to turn its bitcoin trust GBTC into an ETF, a lawsuit has been filed challenging the rejection. By rejecting the application, the company claimed, that the SEC violated the Administrative Procedure Act and Securities Exchange Act 1934. On Tuesday, 7 March 2023, the lawsuit would heard in front of the District of Columbia Court of Appeals.

GBTC Discount Recovery

In what could be an indication of market confidence in Grayscale’s argument, the Grayscale Bitcoin Trust (GBTC) share price rallied on Monday. At one point, the $GBTC price was up by around 4.50%, narrowing the GBTC discount to one month low. On the flip side, the share price rise also could have been a counter move to book profits before risking price drop with arguments going against Grayscale. Currently, the daily price is down to just 2.49%, fueling the case for a bull trap.

“The most basic way in which an agency (The SEC) can act in an arbitrary and capricious manner is to take like cases, like situations, and treat them differently.”

Donald Verrilli Jr., the attorney representing Grayscale in the lawsuit, believes the fundamental premise at stake in the case is quite simple. His point is centered around the argument that the SEC treated futures Bitcoin ETF and spot ETF applications differently, which is a violation.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @BitcoinReddy and reach out to him at [email protected]

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Source: https://coingape.com/grayscale-bitcoin-trust-share-price-rallies-ahead-of-sec-case-is-it-a-trap/