Following a wave of SEC rejections, Grayscale filed an application to convert its flagship fund, GBTC, into an ETF. A lawsuit against the SEC has been opened. The company believes that the SEC’s denial will harm investors in addition to violating the Administative Procedures Act.
On October 12, as reported by Theblock, crypto asset management firm Grayscale Investments has filed an opening summary of a lawsuit by the U.S. Securities and Exchange Commission (SEC) rejecting an application for an exchange-traded fund spot bitcoin exchange.
Grayscale chief legal officer Craig Salm said that the spot and futures ETFs are “Distinction without a difference in the context of bitcoin,” because, “CME bitcoin futures themselves are priced under the spot bitcoin market.”
Today’s summary argues that the SEC’s refusal to approve the GBTC conversion will harm its 850,000 investors who already own shares in the trust.
The U.S. Stock Exchange said in its press conference the Commission failed to demonstrate why it would process the approval of Bitcoin futures ETPs and spot Bitcoin ETPs, thereby violating fundamental requirements version of the Administrative Procedures Act of the United States.
“The Commission has violated the [Administrative Procedure Act’s] most basic requirements by failing to justify its vastly different treatment of bitcoin futures ETPs and spot bitcoin ETPs,”
The brief said
The lawsuit supports claims made when the SEC rejected Grayscale’s application at the end of June. It said it was prepared for all possible scenarios and had ramped up resources legal for unexpected endings.
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