Grayscale CEO contemplates suing the SEC if it does not accept his proposal to launch a Bitcoin ETF in the US – DiarioBitcoin

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Grayscale CEO contemplates suing the SEC if it does not accept his proposal to launch a Bitcoin ETF in the US - DiarioBitcoin By Angel Di Matteo @shadowargel

The CEO of grayscale maintains that the option is on the table, and defends that the company has done everything possible to convert GBTC, its flagship product, in a Bitcoin ETFs which already has the support of more than 800,000 investors.

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The company that manages investment funds based on cryptocurrencies, greyscale, announced that it plans to take legal action against the US Securities and Exchange Commission (SEC)if it sticks to its stance of rejecting the launch of an ETF based entirely on Bitcoin.

grayscale will sue the SEQ if they don’t accept your Bitcoin ETFs

This was announced during an interview for Bloomberg the CEO of greyscale, Michael Sonnenshein, who argues that the SEQ would be acting illegally by continuing to refuse approval of the first ETF (ETFs) fully based on Bitcoin, something that clearly affects the local market and has generated tensions between entities interested in launching this type of product.

Sonnenshein stressed that “all options are on the table” when asked if grayscale consider filing a lawsuit against the Administrative Procedure Law, this in case your request to convert the Grayscale Bitcoin Trust (GBTC) of the company in a ETFs associated directly in the digital currency, adding:

“The Grayscale team has been putting all of the company’s resources into turning GBTC, our flagship fund, into an ETF… It’s really important that investors know that we have stood up for them and will continue to stand up for them”.

About the rise of the Grayscale Bitcoin Trust and wishes that this becomes a ETFs, Sonnesnshein noted:

“GBTC today is owned by investors in all 50 states, and there are actually over 800,000 accounts in the US now, all patiently waiting for it to become an ETF.”

With these statements the CEO of grayscale confirms what has already been airing since mid-December 2021, since the vice president of the legal department for the company, Craig Salm commented at the time that the perspective with which the SEQ has acted on requests for a Bitcoin ETFs could be considered as “arbitrary and capricious… in violation of administrative laws”so it was among the possibilities to file a lawsuit about it.

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rejection towards a Bitcoin ETFs

The criticism of the director of grayscale refer to the fact that the regulatory body has continually rejected applications for a ETFs Bitcoin since the first of its kind was presented, a line on which it still maintains despite the fact that in October of last year it officially accepted the first products of this type based on digital currency futures.

Regarding the reasons for the rejection, the SEC alleges that “there are not enough guarantees” in none of the requests submitted to date that the price of Bitcoin is not subject to possible market manipulation, as well as the fact that it is not entirely clear how the interested entities will keep clients safe in cases of strong volatility in the price of digital currency.

Proposals from entities such as WisdomTree, VanEck, Skybridge Capital, NYDIG, Global X, Fidelity and many others have been rejected to date for the reasons stated above, and this predicts possible bad results for Galaxy Digital, Ark Invest and even for the same Grayscale.

Faced with the refusal of SEC, the CEO of VanEck, Jan Van Eck, assured that the Commission is purposely withholding the possibility of accepting a ETFs fully based on Bitcoin waiting to have greater control over said financial market.

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Source: Blockworks, Bloomberg

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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