- Grayscale, the world’s largest digital asset management firm, has submitted a new official letter to the court in its lawsuit with the SEC.
- The SEC’s refusal to accept the GBTC ETF has been criticized in the letter sent to the lawsuit panel opened in the Columbia District Court of Appeals.
- The SEC had rejected Grayscale’s request to convert its famous GBTC product into an ETF last year, alleging that the product was susceptible to fraud and manipulation.
Grayscale Continues Legal Battle with SEC Over GBTC ETF
Grayscale’s New Official Letter to the Court
Grayscale, recognized as the world’s premier digital asset management firm, has taken a new step in its ongoing legal dispute with the Securities and Exchange Commission (SEC). The firm has submitted a fresh official letter to the court, marking the latest development in a case that has drawn significant attention within the cryptocurrency community.
Criticizing the SEC’s Refusal to Approve GBTC ETF
In the letter, Grayscale expresses its dissatisfaction with the SEC’s refusal to approve its Grayscale Bitcoin Trust (GBTC) as an exchange-traded fund (ETF). This refusal has been a point of contention since last year when the SEC rejected Grayscale’s request to convert its renowned GBTC product into an ETF. The firm’s letter to the lawsuit panel opened in the Columbia District Court of Appeals criticizes the SEC’s stance on this matter.
The SEC’s Allegations and Grayscale’s Response
The SEC had justified its refusal by alleging that Grayscale’s GBTC product was prone to fraudulent activities and manipulation. The commission has consistently maintained that futures-based Bitcoin ETFs are much safer than spot ones, and has so far rejected all requests for spot Bitcoin ETFs. Grayscale, however, disputes these allegations. The firm argues that the SEC’s approval of leveraged Bitcoin ETFs reveals an arbitrary and differential approach, as these products pose a greater risk to investors than the product Grayscale is proposing.
