Grayscale is suing the SEC since they denied its application for an ETF.
On Wednesday, the Securities and Exchange Commission (SEC) rejected Grayscale Investments’ proposal to convert its $13.5 billion Grayscale Bitcoin Trust (GBTC) into a spot-based bitcoin exchange-traded fund (ETF), despite the company’s strenuous efforts to secure permission for years.
Michael Sonnenshein, CEO of Grayscale, swiftly turned to Twitter after the notification was issued by the SEC to announce the company’s intention to take legal action. In a statement released by Grayscale, the company is challenging the decision to refuse Grayscale Bitcoin Trust’s conversion into a spot Bitcoin ETF in the United States Court of Appeals for the District of Columbia.
We’ve filed a lawsuit against the SEC. $GBTC
— Sonnenshein (@Sonnenshein) June 30, 2022
In an interview with Bloomberg, Sonnenshein has said that Grayscale’s flagship Bitcoin fund, GBTC, has been overwhelmingly requested to be converted to a spot Bitcoin ETF. According to Ycharts, the GBTC fund is presently trading at a discount or negative premium of 29%.
Back in October 2021, Grayscale submitted paperwork to convert its Bitcoin Trust, also known as GBTC, into an exchange-traded fund (ETF), but the ruling was repeatedly pushed back. Grayscale has applied a great deal of pressure on the watchdog to approve its application, including providing individuals with a means of easily sending in their support by email in a short amount of time.
Grayscale’s senior legal strategist Donald B. Verrilli Jr., a former U.S. solicitor general, and a team of lawyers at the law firm Davis Polk & Wardwell are now in charge of the case. They are being assisted in their efforts by Grayscale’s in-house legal counsel.
According to Verrilli, the SEC does not apply uniform treatment to identical investment vehicles, and as a result, the agency is behaving arbitrarily and capriciously, which is a violation of both the Administrative Procedure Act and the Securities Exchange Act of 1934.
A subsidiary of Barry Silbert’s Digital Currency Group, Grayscale was formed in 2013. Data, financial products, and exposure to digital assets are offered by the firm. Grayscale has submitted many Bitcoin ETF applications since its inception.
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Source: https://thecryptobasic.com/2022/06/30/sec-rejects-grayscale-bitcoin-spot-etf-application-and-grayscale-sues-sec/?utm_source=rss&utm_medium=rss&utm_campaign=sec-rejects-grayscale-bitcoin-spot-etf-application-and-grayscale-sues-sec