Grayscale, one of the world’s biggest digital asset managers, has launched a lawsuit against the U.S. Securities and Exchange Commission (SEC) for failing to approve its proposal for a Bitcoin Spot ETF.
Grayscale Spot Bitcoin ETF Rejected
On Wednesday, June 29, the U.S. securities regulator rejected a proposal to launch a Bitcoin Spot ETF. According to the SEC, Grayscale did not meet standards to prevent fraudulent and manipulative market practices.
The Commission listed wash trading, whale manipulation, exchange and network hacking, stablecoin manipulation, and dissemination of misleading information as potential sources of fraud and manipulation in the spot Bitcoin Market.
The SEC wrote that the rejection was not based on an “assessment of whether Bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.”
Grayscale Responds with Lawsuit
Grayscale responded to the rejection by launching a lawsuit against the securities regulator. Grayscale CEO Michael Sonnenshein alleges that the SEC has violated the Administrative Procedure Act and Securities Exchange Act.
The digital asset manager has filed a “petition for review” with the United States Court of Appeals for the District of Columbia. Grayscale now challenges the SEC’s decision to reject the conversion of the Grayscale Bitcoin Trust (GBTC) to a spot ETF.
On the Flipside
- Jacobi Asset Management announced on June 30 that it would launch Europe’s first bitcoin exchange-traded-fund (ETF) on the Euronext exchange.
Why You Should Care
Grayscale has announced that it will continue to leverage all of its resources to advocate for its investors and push for the launch of the first Bitcoin Spot ETF in the U.S.
Grayscale is making better headway in Europe. Read about that below:
Grayscale enters the European ETF market with new finance fund
Read about the first Bitcoin short ETF below:
ProShares Prepares to Launch First ETF Allowing U.S. Investors to Bet Against Bitcoin
