Grayscale’s Offer Of Conversion To ETFs Has Been Refuted By SEC And Grayscale Go For Appeal
The long-awaited Grayscale’s offer of the approval of the conversion of the GBTC to ETFs has been refuted by the SEC. Due to this, the grayscale has sued the US SEC.
“ We’re deeply dissatisfied by and don’t agree with its decision, ” Grayscale Investments said in a statement posted on its website. The SEC also refuted Bitwise’s operation for a spot bitcoin ETF during the same period.
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It happed on Wednesday in a ruling, the SEC denied Grayscale’s offer to list a spot bitcoin ETF on the NYSE Arca exchange. The proposed ETF failed to meet the standard designed to avert fraudulent and manipulative practices and to cover investors and public interest, as stated by the regulator.
Grayscale didn’t stay but rose to challenge the SEC’s decision by asking the court of Appeals for the District of Columbia Circuit to review the SEC’s decision as stated in the solicitation for review on Wednesday.
The SEC’s revealed the source of possible manipulation in the spot market which includes people in a dominant position in bitcoin trying to;
• Manipulate the bitcoin’s price
• Hacks on trading platforms and Tether’s “ purported ” part as a stablecoin in the broader ecosystem.
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The SEC also said that the disapprobation of the product doesn’t lean on the “ assessment of whether bitcoin or blockchain technology more generally, has mileage or value as an invention or an investment ”.
The Grayscale preliminarily filed its operation in October 2021, when the first bitcoin future-grounded ETF entered a request to trade on the New York stock Exchange.
This allows investors to distribute bitcoin at a destined price against tracking the spot price of the underlying asset.
The SEC requested the additional comment from the public, an aggregate of 11,400 comments was submitted so far since November 2nd which stated 99% support of the offer. Even the grayscale went on to hire the US solicitor General Donald B. Verilli, Jr as an elderly strategist to strengthen their legal platoon in menacing the legal action against SEC.
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