- Grayscale Investments’ historic victory against the Securities and Exchange Commission (SEC) enabled the crypto giant to get the green light for its Bitcoin Trust product.
- The SEC’s initial concern when reviewing Grayscale’s GBTC over-the-counter application was the product’s potential vulnerability to “deceptive and manipulative acts.”
- Peter Schiff expressed his concerns on social platform X. Schiff highlighted that the transformation of GBTC into a spot Exchange Traded Fund (ETF) could have unpredictable consequences on Bitcoin market dynamics.
Peter Schiff commented on Grayscale’s lawsuit against the SEC; according to Schiff, this decision could have negative consequences for Bitcoin.
Peter Schiff Comments on Grayscale’s SEC Victory
Grayscale Investments’ historic victory against the Securities and Exchange Commission (SEC) enabled the crypto giant to get the green light for its Bitcoin Trust product. However, prominent financial figure Peter Schiff sounded the alarm regarding possible consequences on Bitcoin’s market dynamics.
The SEC’s initial concern when reviewing Grayscale’s GBTC over-the-counter application was the product’s potential vulnerability to “deceptive and manipulative acts.” Grayscale, a crypto giant, was not deterred. By challenging the SEC’s rejection in court, the company is now celebrating its success.
As highlighted by COINOTAG, the DC Circuit Court of Appeals stated that the SEC’s rejection of Grayscale’s request to convert its Bitcoin Trust into an Exchange Traded Fund (ETF) was unfounded. The decision was based on the belief that the Trust was not adequately equipped to deter deceptive practices.
Peter Schiff’s Concern
Peter Schiff expressed his concerns on social platform X. Schiff highlighted that the transformation of GBTC into a spot Exchange Traded Fund (ETF) could have unpredictable consequences on Bitcoin market dynamics. Grayscale’s potential new product structure could bring unforeseen volatility or disruptions.
On the other hand, Jake Chervinsky, the Vice President of the Blockchain Association, stated that this court decision was a significant victory that could potentially embarrass the SEC, but he also emphasized that the path to a spot Bitcoin ETF product is not entirely clear.
Supported by this victory, Grayscale may face the challenge of proving that its proposed ETF can combat fraud, meet regulatory expectations, and fulfill the stability needs of the broader financial market.
As Grayscale moves forward with its goals, the wider crypto community will closely monitor and discuss the benefits of increased access and liquidity, as well as potential changes in market dynamics warned by Schiff and others.
