CEO and founder of Digital Currency Group (DCG) Barry Silbert said Grayscale Investments is suing the U.S. Securities and Exchange Commission.
What Happened: Grayscale, which is owned by DCG, is challenging the decision by the SEC to deny the conversion of Grayscale Bitcoin Trust GBTC into a spot Bitcoin BTC/USD exchange-traded fund, according to a statement shared by Silbert.
“Through the ETF application review process, we believe American investors overwhelmingly voiced a desire to see GBTC convert to a spot Bitcoin ETF,” said Silbert.
The cryptocurrency entrepreneur said the conversion of GBTC to an ETF would “unlock billions of dollars of investor capital while bringing the world’s largest Bitcoin fund further into the U.S. regulatory perimeter.”
See Also: How To Get Free NFTs
Why It Matters: The SEC rejected a proposal by Grayscale to list the spot ETF on Wednesday, reported Reuters, saying its disapproval did not rest on an “an assessment of whether Bitcoin, or blockchain technology ... has utility or value as an innovation or an investment."
Grayscale’s senior legal strategist and former U.S. Solicitor General Donald B. Verrilli, Jr said the SEC is “failing to apply consistent treatment to similar investment vehicles, and is therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934.”
In April, Ark Investment Management CEO Cathie Wood said the SEC's decision to reject Ark’s spot Bitcoin ETF was baffling.
Price Action: On Wednesday, GBTC closed 0.5% higher at $13.32 and fell 0.4% lower in after-hours trading. At press time, over 24 hours, Bitcoin traded 0.2% lower at $20,075.97, according to data from Benzinga Pro.
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