If Grayscale’s ETF Application Is Denied, It May File A Lawsuit Against The SEC.
According to Grayscale’s CEO, if the SEC does not accept its proposal for a Bitcoin spot ETF, the company may sue. The cryptocurrency investing giant has filed an application with the Securities and Exchange Commission to transform its Grayscale Bitcoin Trust into a spot ETF, utilizing Bitcoin as its underlying asset.
The race for the coveted Bitcoin spot exchange-traded fund continues, but this time with a twist.
Michael Sonnenshein, the CEO of Grayscale Investments, indicated today in an interview with Bloomberg that if the Securities and Exchange Commission did not accept his company’s Bitcoin spot ETF proposal, he would consider filing a lawsuit. “I think all options are on the table,” Sonnenshein replied when asked if his business may sue the SEC under the Administrative Procedures Act.
He went on to say how important it is for individuals to contact the SEC in response to the agency’s call for public comment, which many have already done.
The SEC has until July 6 to decide whether the Grayscale Bitcoin Trust may be converted into a Bitcoin spot exchange-traded fund. Grayscale is putting its “full resources” behind having the applications accepted by then, according to Sonnenshein.
He stressed the sheer scale of the GBTC fund in the interview, highlighting the fund’s 800,000 accounts in the United States. The Trust has been trading since 2015, and Grayscale’s CEO claims that keeping it as is instead of converting it to an ETF puts investors at risk.
Sonnenshein said that the SEC is not “doing everything [it] can to actually protect investors” since investors are unable to benefit from the protections given by the “ETF wrapper.”
He did, however, consider the SEC’s approval of a Bitcoin futures ETF, as well as President Biden’s recently signed executive order, to be progress—and he believed it was only a matter of time before the Commission authorized the long-awaited Bitcoin spot ETF.
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