Grayscale, one of the world’s biggest digital asset managers, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) for its refusal to approve its bitcoin Spot ETF proposal.
Grayscale Spot Bitcoin ETF Rejected
On Wednesday, June 29th, the U.S. securities regulator rejected the Grayscale proposal to launch a bitcoin Spot ETF. According to the SEC, Grayscale did not meet the required standards for the prevention of fraudulent and manipulative market practices.
The Commission listed wash trading, whale manipulation, exchange and network hacking, stablecoin manipulation, and dissemination of misleading information as potential sources of fraud and manipulation in the spot Bitcoin Market.
The SEC wrote that the rejection was not based on an “assessment of whether Bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.”
Grayscale Responds with Lawsuit
Grayscale responded to the rejection by launching a lawsuit against the securities regulator. Grayscale CEO Michael Sonnenshein alleges that the SEC has violated the ‘Administrative Procedure‘ and ‘Securities Exchange‘ acts.
The digital asset manager has filed a “petition for review” with the United States Court of Appeals for the District of Columbia. Grayscale is now challenging the SEC’s decision to reject the Grayscale Bitcoin Trust’s (GBTC) conversion into a spot ETF.
On the Flipside
- Jacobi Asset Management announced on June 30th that it would be launching Europe’s first bitcoin exchange-traded-fund (ETF) on the Euronext exchange.
Why You Should Care
Grayscale has announced that it will continue to leverage all of its resources to advocate for its investors, and push for the launch of the first bitcoin Spot ETF in the U.S.
Grayscale is making better headway in Europe. Find out more below:
Read about the first Bitcoin short ETF: