Grayscale Investments has filed a lawsuit with the SEC after the US Securities and Exchange Commission (SEC) rejected the company's Bitcoin Fund GBTC's proposal to be listed as the first spot Bitcoin exchange-traded fund.
The US Securities and Exchange Commission (SEC) has not yet approved an Exchange Traded Fund (ETF) product based on the spot Bitcoin price, which it has previously rejected in its latest decisions. In the decision taken yesterday, it was stated that Grayscale's investment product did not meet sufficient standards to prevent manipulative actions and practices. Thinking that the US Securities and Exchange Commission (SEC) made an arbitrary decision, Grayscale officials expressed their disappointment and disagreement with the decision.
Grayscale described the SEC's failure to make the same decision for a spot Bitcoin ETF after approving several Bitcoin futures ETFs as inconsistent, adding that regulators could not understand why the spot value of a particular asset could not be trusted if they were relying on its derivative.
After the refusal, Grayscale filed a lawsuit with the U.S. Court of Appeals in Washington, demanding the SEC review its decision, arguing that the regulator violated the Administrative Procedure Act and the Securities Exchange Act.
Grayscale, which operates as the world's largest digital money management company, applied for the Grayscale Bitcoin Trust (GBTC) investment product, which reached a size of close to 20 billion dollars at the beginning of this month, to be traded on the NYSE Arca stock market. On the other hand, the approval of a spot Bitcoin price-based ETF is thought to be a development that will increase the adoption of cryptocurrencies in traditional markets. It is thought that liquidity in crypto markets may increase with a possible ETF approval, which is seen as an important turning point for crypto money markets.