Source: iStock / Pgiam
One of the largest Bitcoin (BTC) and crypto investment companies based in the US Grayscale Investmentssued the US Securities and Exchange Commission (SEC) after denying its request for conversion Grayscale Bitcoin Trust (GBTC), the world’s largest BTC fund, to a Spot Exchange Trading Fund (ETF).
“It is the SEC’s arbitrary and capricious actions and discriminatory treatment of issuers that make it necessary to take this matter to court in the best interests of GBTC and our investors,” the company said.
According to them, the market watchdog fails to treat BTC investment vehicles consistently, as evidenced by the denial of GBTC’s application to convert to a spot ETF, but the approval of several BTC futures ETFs.
“Logically, if regulators are familiar with ETFs that hold derivatives of a given asset, they should also be familiar with ETFs that hold the same asset,” they added.
Meanwhile, the SEC still maintains that the GBTC conversion would not prevent fraudulent and manipulative acts and practices and would not protect investors and the public interest.
GBTC now holds $12.9 billion worth of BTC. According to Grayscale, GBTC shares traded at a discount of about 30% to net asset value as of June 29, representing about $8 billion in unrealized shareholder value.
“We strongly believe that converting GBTC into a spot bitcoin ETF remains the best option for investors: it would effectively eliminate the discount and result in stocks tracking the price of bitcoin,” the company said.
As of 03:49 UTC, BTC is trading at $20,078, down 1% in a day and almost flat in a week.
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Learn more:
– Grayscale Bitcoin Trust ready for ETF
– Optimism rises over Grayscale’s Bitcoin ETF filing as Star Legal Counsel joins the team
– Grayscale notes rising interest in Bitcoin as it pushes Spot BTC ETF
– Ethereum Futures ETF May Come Before Spot Bitcoin ETF – Analyst
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