Grayscale could sue the SEC if it doesn’t approve an application for a spot Bitcoin ETF, according to its CEO. The crypto investment giant has an application with the SEC to convert the Grayscale Bitcoin Trust into a spot ETF, which will track Bitcoin as its underlying asset.
Grayscale may sue the SEC if its ETF application is denied
In an interview with Bloomberg today, the CEO of Grayscale Investments, Michael Sonnenshein, said that his firm would consider a lawsuit against the Securities and Exchange Commission (SEC) if the regulator does not approve their spot Bitcoin ETF application. When asked if his company might pursue an Administrative Procedures Act lawsuit against the SEC, Sonnenshein said, “I think all options are on the table.”
He emphasized the importance of people contacting the SEC in response to a request for public comment, which many have already done. The SEC has until July 6 to determine if it will allow the Grayscale Bitcoin Trust into a Bitcoin spot exchange-traded fund. Sonnenshein noted that Grayscale was devoting “full resources” to supporting approved applications.
In the interview, he emphasized the sheer size of the GBTC fund, citing its 800,000 accounts in the United States. The trust has been traded since 2015, and Grayscale’s CEO argues that leaving the Trust as it is, rather than being converted into an ETF, puts investors at risk. Since investors cannot enjoy the protections offered by the “ETF wrapper,” the SEC is not “doing everything it can to protect investors,” Sonnenshein argued.
However, he counted the SEC’s approval of a Bitcoin futures ETF and President Biden’s recently signed executive order — and he also claimed it was only a matter of time before Committee approves the long-awaited Spot Bitcoin ETF.
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