Grayscale filed a complaint against the decision of the Securities and Exchange Commission (SEC), which prevented the launch of a bitcoin exchange-traded investment fund (BTC-ETF) in June. According to the company’s general counsel, the case is moving quickly.
1/ As part of our suit challenging the SEC’s decision to deny $GBTC conversion to a spot #bitcoin #ETF, @Grayscale just filed our Reply Brief with the DC Circuit Court of Appeals. Here’s what you need to know:
— Craig Salm (@CraigSalm) January 13, 2023
Recall that the company filed an application with the SEC in October 2021, and the regulator rejected it on June 29, 2022.
Grayscale is owned by the Digital Currency Group (DCG), which is experiencing financial difficulties. Previously was informationwhat DCG will sell some of its venture capital to make up for the shortfall due to its involvement with related cryptocurrency broker Genesis Global Trading.
The DCG venture has over 200 crypto related projects, including exchanges and banks, including Grayscale. Distributed in about 35 countries, the group’s total value is about $500 million.
According to Grayscale, the SEC is biased in its review of applications for ETFs, unlike futures products. Representatives of Grayscale insist that the correlation between the spot price of bitcoin and prices in the futures market is 99.9%. And most importantly, according to the company’s team, the SEC has exceeded its authority.
SEC officials argue that the Grayscale project cannot protect potential investors from all sorts of fraud and manipulation. The commission found similarities with other similar ETF projects, such as One River, which also failed to provide sufficient evidence of the protection of user interests.
Today we also reported that Justin Sun is ready to buy DCG assets for $1 billion