Tuesday, October 4, 2022
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SEC VS Grayscale: SEC judgement on Grayscale petition regarding Bitcoin ETF expected in July

The SEC’s judgement on Grayscale’s petition is expected in July. Michael Sonnenshein urged all interested parties to communicate their concerns to regulate, highlighting his agency’s collaborative nature. According to the source, Grayscale CEO Michael Sonnenshein stated that he was not shut  to any alternative that would bring a Bitcoin ETF closer to reality. When asked directly if he was willing to pursue legal action against the SEC, he said emphatically: “I think all options are on the table,” urging other investors to open more channels of communication with US regulators.

However, The SEC has made its announcement very late until today, and with that the corporation remains on hold. This sense of uncertainty pervades the markets, especially given that no previous Bitcoin spot ETF application has been accepted by the SEC. 

The Grayscale Bitcoin Trust (GBTC) is the largest fund of its kind, with over 800,000 investors. Grayscale’s attempts to develop a spot Bitcoin ETF. The company started its journey in 2021 with an application to transform its Grayscale Bitcoin Trust into a Spot Bitcoin ETF.

Grayscale’s attempts to develop a spot Bitcoin ETF. The company started its journey in 2021 with an application to transform its Grayscale Bitcoin Trust into a Spot Bitcoin ETF. If things don’t work out the simple way, Grayscale is clearly not scared to try the difficult way.

This sense of uncertainty pervades the markets, especially given that no previous Bitcoin spot ETF application has been accepted by the SEC. The Grayscale Bitcoin Trust (GBTC) is the largest fund of its kind, with over 800,000 investors.

Grayscale has been trying to persuade the SEC to reconsider its approach for some time. Grayscale Chief Legal Officer, Craig Salm released a letter addressed to the SEC on social media in December of last year, saying that its position may be illegal.

Till the date, the SEC has only authorised Bitcoin futures ETF registrations. However, while they may appear identical to the untrained eye, a Bitcoin ETF and a Bitcoin futures ETF have extremely different characteristics, beginning with the underlying asset. The Bitcoin futures market is more volatile than the spot market, but it is also more strictly regulated.

Grayscale has been trying to persuade the SEC to reconsider its approach for some time. Grayscale Chief Legal Officer, Craig Salm released a letter addressed to the SEC on social media in December of last year, saying that its position may be illegal.

Read more:

Grayscale vs SEC: Grayscale warns SEC to sue over Bitcoin ETF products rejection

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