Home
News
Grayscale Investments has launched a legal challenge against the US Securities and Exchange Commission (SEC) once being denied its application to convert its Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin (BTC) exchange-traded fund (ETF). On Wednesday, it declared that its senior legal strategist, former U.S. peace officer Donald B. Verrilli Jr., had filed a petition for review with the u. s. Court of Appeals for the District of Columbia Circuit.
US SEC is acting freakishly to allow BTC spot ETF
Verrelli declared that the most recent call shows that the SEC is acting arbitrarily and capriciously by failing to use consistent treatment to similar investment vehicles” and can be following a legal challenge supported the SEC’s alleged violation of the executive Procedure Act (APA) and Securities Exchange Act (SEA).
Grayscale Investments, that has $12.92 billion of assets below management in its GBTC, had been waiting on a choice from the SEC to convert its flagship Bitcoin trust into a spot-based ETF since filing its application to the regulator on October 19, 2021.
In keeping with a filing from the protection regulator on Wednesday, the applying was condemned to guard investors and therefore the public interest because the proposal didn’t demonstrate however it’s designed to forestall dishonest and artful acts and practices.
US SEC disappoints monetary establishments
the choice came out a full week before the Gregorian calendar month vi deadline, and came on an equivalent day as a similar rejection of Bitwise’s Bitcoin exchange-traded product (ETP). Archangel Sonnenshein, Grayscale’s CEO, in a very statement on Wednesday, same they were deeply disappointed and vehemently disagree with the SEC’s decision to deny their application. He anymore that the firm can still leverage the total resources of the firm to advocate for our investors and the just restrictive treatment of Bitcoin investment vehicles.
Proceeds would take twelve to eighteen months
Addressing his 19,400 Twitter followers, James Seyffart, an ETF analyst at Bloomberg Intelligence, same that whereas the case has been filed, a court ruling on the matter isn’t expected till Q3 2023 to Q1 2024, that means that we tend to might not see the GBTC going forward any time soon. Grayscale had been to train up its legal team for a possible spat with the SEC. Earlier this month, the firm employed Donald B. Verrilli Jr., a former U.S. solicitor general, to affix its legal lineup. Different attorneys in Grayscale’s legal line-up embrace attorneys at Davis President & Wardwell LLP and its in-house counsel, together with Craig Salm, who is chief legal officer.
In March, Grayscale chief operating officer archangel Sonnenshein told Bloomberg that his firm would contemplate a case below the executive Procedure Act (APA) ought the applying for its Bitcoin Spot ETF be denied by the monetary regulator.
