Over the past year, Grayscale Investments, the world’s largest digital asset manager, has been working to transform its “Grayscale Bitcoin Trust” (GBTC) into a “Bitcoin Spot ETF”, but the application was rejected by the United States on Wednesday. The Securities and Exchange Commission (SEC) vetoed. To this end, Grayscale was dissatisfied and decided to sue the court.
According to an official release , the SEC rejected Grayscale’s bitcoin spot ETF application for failing to meet the requirements of the “Prevention of Fraudulent and Manipulative Practices.
The U.S. Securities and Exchange Commission (SEC) has so far not approved any bitcoin spot ETF due to concerns about extreme volatility in bitcoin prices and market manipulation .
According to Grayscale , the company has filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit challenging the SEC’s decision.
Grayscale accused the SEC of acting “arbitrarily and capriciously,” failing to adopt a consistent approach to similar investment vehicles, violating the Administrative Procedure Act of 1934 and the Securities Exchange Act, alluding to the SEC’s willingness to approve “bitcoin futures” ETF” has not released the “Bitcoin Spot ETF” for a long time, which is unfair.
Michael Sonnenshein stated in the press release:
We are deeply disappointed and strongly disapprove of the SEC’s repeated decision to deny spot Bitcoin ETFs access to the U.S. market.
He added that Grayscale will continue to speak out for its investors to ensure that “every bitcoin investment vehicle is treated fairly and regulated,” adding that it would take all its resources to achieve this goal.
As early as March this year, Michael Sonnenshein claimed that if Grayscale’s bitcoin ETF application was rejected by the regulator, the company did not rule out taking legal paths and would consider filing a lawsuit against the SEC.
