Grayscale is ready to pursue SEC’s ETF application denial to the final end.
Reuters has reported that Grayscale Investments is prepared to go all the way in its case against the Securities and Exchange Commission (SEC) over the rejection of a bitcoin exchange-traded fund (ETF) proposal. According to Grayscale’s CEO Michael Sonnenshein, his company is prepared to appeal, should the court uphold the decision by SEC in denying the proposal.
SEC denied Grayscale’s proposal in June 2022 seeking to convert its existing Grayscale Bitcoin Trust (GBTC) into an ETF. The reason given by the SEC for denial is that it does not meet the standards for preventing fraudulent services and protecting investors.
Grayscale was unimpressed with the decision and decided to go the legal route. The company argues that the SEC was acting arbitrarily in rejecting the proposal for spot bitcoin ETFs, having previously approved bitcoin futures ETFs.
The next hearing appointment for the case is scheduled for March 7, 2023, at the District of Columbia Court of Appeals, where it was originally filed. In case of further appeal, it will be moved to the U.S. Supreme Court or an en banc panel review.