- Grayscale’s lawyers criticized the approval of the Securities and Exchange Commission (SEC) for a leveraged Bitcoin ETF after the rejection of the company’s spot Bitcoin ETF application.
- Last year, the SEC rejected Grayscale’s application to convert Grayscale Bitcoin Trust (GBTC) into an ETF.
- Grayscale’s Bitcoin Trust product, GBTC, experienced a 59% increase from June 15 to July 3. GBTC, which attracted attention with the start of the ETF race, rose to $20.85.
Grayscale, the company struggling to convert the Bitcoin Trust product into a Bitcoin ETF, criticized the SEC for approving a leveraged ETF.
Grayscale Protests SEC’s ETF Approval
Grayscale, the world’s largest digital asset manager, criticized the Securities and Exchange Commission (SEC) for approving a leveraged Bitcoin ETF after rejecting the company’s spot Bitcoin ETF application. This criticism was included in the letter shared by the company.
In the letter addressed to the District of Columbia Circuit Court of Appeals, it was claimed that the SEC approved a leveraged ETF that is “more risky” than exchange-traded products based on “traditional” Bitcoin futures contracts in late June.
In the letter, Grayscale’s lawyers said;
“The Commission’s clear intention not to correct its discriminatory treatment of spot Bitcoin ETPs, even though it could theoretically correct it by revoking its approval for all Bitcoin-based ETPs.”
Last year, the SEC rejected Grayscale’s application to convert Grayscale Bitcoin Trust (GBTC) into an ETF, and as a result, the company filed an appeal against the regulatory agency, alleging a violation of the Administrative Procedure Act. The Columbia Circuit Court of Appeals heard arguments from both sides in March, and a decision is expected to be announced by the end of the year.
Grayscale’s GBTC Receives High Interest
Following BlackRock’s application for a spot Bitcoin ETF on June 15, several investment management companies, including Fidelity Investments, also applied for a Bitcoin ETF.
During these events, Grayscale’s Bitcoin Trust product, GBTC, experienced a 59% increase from June 15 to July 3. GBTC, which attracted attention with the start of the ETF race, rose to $20.85, the highest level since May 31, 2022.
