Grayscale will sue the SEC if it refuses to launch a bitcoin ETF

The company has invested all of its resources in converting its bitcoin trust into an exchange-traded fund, the CEO of Grayscale stated

29.03.2022 - 14:00

358

1 min

What’s new? Digital asset management company Grayscale is preparing to file a lawsuit against the US Securities and Exchange Commission (SEC) if it refuses to launch a bitcoin exchange-traded fund (ETF). This was announced by the company’s CEO Michael Sonnenschein in an interview for Bloomberg. This will happen if the SEC continues to reject Grayscale’s applications. The next decision date for the investment product is July 6, 2022.

Bloomberg’s interview

What did Sonnenschein say in the interview? Grayscale’s CEO stressed that the company has invested all its resources in converting its flagship GBTC fund into an ETF. Sonnenschein said that there are GBTC investors in 50 US states and about 800 000 more are waiting for the fund to be converted into an ETF. The CEO added that he considers the approval of a bitcoin ETF a matter of time.

What preceded it? Grayscale Investments applied to the SEC in October 2021 to convert its bitcoin trust into an ETF. However, in February 2022, the commission postponed a decision to launch a bitcoin ETF. The SEC stated it needed time to better explore Grayscale’s capability to crack down on fraudulent activity on the spot market.

What is an ETF? An Exchange Traded Fund is an exchange-traded index fund in the form of a basket of securities.

Author: