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Grayscale sues SEC after rejecting bid to turn Bitcoin fund into ETF

On Wednesday, the SEC rejected the grayscale Spot Bitcoin ETF application because the investment manager did not answer questions about market manipulation concerns.

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Grayscale, which manages the world’s largest Bitcoin fund, said it would sue the US Securities and Exchange Commission after regulators declined a bid to convert an investment vehicle into an exchange-traded fund.

On Wednesday, the SEC rejected the grayscale application for Spot Bitcoin exchange-traded funds because investment managers did not answer questions about market manipulation concerns.

Watchdog is concerned that investors lack sufficient protection under the grayscale proposal.

Grayscale applied for an ETF in the Bitcoin Trust (known as GBTC) in October 2021, but the ruling faced multiple delays. Grayscale was putting pressure on the watchdog.Includes providing people with a quick way to send an email to express their support.

Shortly after the SEC’s dismissal, Grayscale filed a petition to the Federal Court of Appeals for the District of Columbia Circuit to challenge the decision. The proceedings are led by Grayscale’s senior legal strategist, Donald B. Beriri Jr., a former US Attorney General, and a team of law firms Davis Pork & Wardwell.

“We are acting arbitrarily and whimsically in violation of the Administrative Procedure Act and the Securities and Exchange Act of 1934 because we have failed to apply consistent treatment to similar investment instruments,” Beriri said. Said.

The SEC was unable to immediately obtain comments outside of normal working hours in the United States.

Grayscale is in the SEC’s position in light of previous decisions to turn other Bitcoin-based ETFs into a green light, including those based on the futures market and those that allow investors to short or bet cryptocurrencies. Claims to be inconsistent.

Cryptocurrency bulls were hoping that the SEC would approve the first U.S. Spot Bitcoin ETFA move that could open cryptocurrencies to more institutional investments.

The move to reject grayscale Bitcoin ETF applications adds to a lot of negative news about cryptography these days. Earlier this week Embarrassed crypto hedge fund Three Arrows Capital collapses into liquidation..

Bitcoin It traded at $ 20,085 at the end of Wednesday and has fallen 1% in the last 24 hours. Cryptocurrencies have lost a total of $ 2 trillion above market value since the peak of the bubble in November 2021.

Grayscale sues SEC after rejecting bid to turn Bitcoin fund into ETF

Source link Grayscale sues SEC after rejecting bid to turn Bitcoin fund into ETF

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