Grayscale’s Application Is Presently At Appellate Court But If Contrary Happens, They Are Ready For Supreme Court Over The Case Of Spot Bitcoin ETF
Following the rejection of Grayscale proposal of converting GBTC to a spot Bitcoin ETF mid-last month, Grayscale with immediate effect filed a lawsuit against the U.S.
Prior to the SEC’s rejection, according to the Sonnenshein, dignitaries have been contacted, to submit their comments on the proposal as required by SEC on November 2nd, 2021 to solicit comments on our proposal to convert GBTC to a spot Bitcoin ETF. Soon thereafter, the Grayscale team developed and deployed a multifaceted strategy to raise awareness about the 19b-4 filing process, rally GBTC investors, educate the general public about the importance of this issue on a national level, cultivate critical relationships in Washington, D.C., and prepare for each possible outcome of the SEC’s decision.
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For this Grayscale stated “ We’re deeply dissatisfied by and don’t agree with its decision, ” Grayscale Investments said in a statement posted on its website.
Presently, the Appellate court is reviewing Grayscale’s application to review the SEC decision. If Grayscale lost it at the Appellate level, it is ready to appeal to the U.S. Supreme court.
The possible option the Grayscale could use now is an “en banc” hearing. In case of an en banc hearing, there will not be random judges deciding the case. The whole group of Judges in the D.C. Circuit will jointly weigh-in to come to a common point in the decision. However, this kind of hearing is rare and occurs only in the case of a split decision or there isn’t a strong justification for the decision.
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The main issue is that the spot Bitcoin ETF issue has been going on for years now and the U.S. SEC seems in no mood of getting this product in the market. And this is the goal of Grayscale, to see that the commodity is launched in the market.
“We can’t be certain about timing, but based on how long federal litigation tends to take – including briefings, oral arguments, and a final court decision – it can typically take anywhere from twelve months to two years, but could be shorter or longer. However long it takes, we believe the strength of our arguments should result in a final decision in our favor at the D.C. Circuit Court of Appeals.”
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