Crypto Asset Manager Grayscale Sues SEC Over Bitcoin ETF Application Rejection
Crypto asset manager Grayscale has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) for rejecting its bitcoin exchange-traded fund (ETF) application. This comes after the SEC approved a leveraged bitcoin-based ETF, which Grayscale claims is even riskier than its own proposed ETF.
Key Points:
- Grayscale’s lawyers criticize the SEC for approving a leveraged bitcoin-based ETF while rejecting Grayscale’s own spot bitcoin ETF application.
- The letter to the U.S. Court of Appeals alleges that the SEC’s approval of a high-risk leveraged ETF shows their lack of intention to treat spot bitcoin ETFs fairly.
- The SEC rejected Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, leading to the lawsuit against the agency.
- The lawsuit alleges a violation of the Administrative Procedures Act.
- A ruling on the case may be expected by the end of the year.
Hot Take:
The lawsuit filed by Grayscale against the SEC highlights the company’s frustration with the regulatory agency’s treatment of bitcoin ETF applications. By approving a leveraged bitcoin-based ETF while rejecting Grayscale’s own proposal, the SEC’s actions seem inconsistent and biased. This case may have implications for the future of bitcoin ETFs and how they are regulated.
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