The risks of creating a new way for retail investors to pour money into cryptocurrency markets are at the heart of a court fight Tuesday between Grayscale Investments LLC and a top US financial regulator.
Grayscale wants to convert its $14 billion Bitcoin Trust (ticker GBTC), the largest investment vehicle tied to the No. 1 cryptocurrency, into an exchange-traded fund. But the Securities and Exchange Commission rejected the plan in June, saying cryptocurrency markets are too ripe for fraud and manipulation. Grayscale sued, asking a federal appeals court to overturn a decision the company called arbitrary.
