The Securities and Exchange Commission (SEC), a US securities market regulator, has renewed Grayscale’s application for a bitcoin (BTC) spot exchange traded fund (ETF) rejected† And now it is enough for the asset manager, who is now dragging the SEC before the judge†
Grayscale to court over bitcoin exchange fund
In October last year, NYSE Arca filed an application to amend certain rules that would allow Grayscale’s already existing bitcoin fund to be converted into a spot ETF.
However, the SEC has again rejected this application, which means that there is still not a single spot ETF in the United States available to investors. Coincidentally, such a fund was recently approved for the Amsterdam stock exchange.
The regulator states that there is too much market manipulation within the crypto market as the reason. Within an hour of this crypto news, Grayscale filed a lawsuit. Grayscale’s CEO is clear in his response to the news:
“We are deeply disappointed with, and strongly disagree with, the SEC’s decision to continue to deny the entry of spot Bitcoin ETFs to the US market,”
SEC treats bitcoin ETF application unfairly
According to Grayscale, which is the asset manager behind the world’s largest bitcoin investment fund, the SEC handled the application unfairly. For example, Grayscale states, “The SEC is failing to apply consistent treatment to comparable investment vehicles and is therefore acting arbitrarily and erratically in violation of [verschillende Amerikaanse wetgeving]†
In addition, American investors are said to have massively expressed their support for the fund during the research period. More than 11,400 investors submitted a response, 99% of which were positive.
It is unclear when the case will be heard. However, it is yet another crypto lawsuit in which the SEC is involved. Another well-known case is of course the XRP case that has also been going on for a long time. Hopefully a resolution will be found sooner in the matter between Grayscale and the SEC!