Grayscale Bitcoin SEC case: It’s been a long battle for Grayscale in its efforts to convert its Bitcoin fund to a spot based ETF. In June 2022, the US Securities and Exchanges Commission (SEC) denied Grayscale’s application to convert into a spot Bitcoin ETF. Following this, the company waged a legal battle against the regulatory agency. In the context of the SEC’s ongoing actions against crypto based businesses, the case could prove to be vital in driving market sentiment in favor of cryptocurrencies.
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The Grayscale management is expecting a decision in the spot Bitcoin ETF decision by as soon as Fall of 2023. It appears the company now placed all its bets on the lawsuit against the SEC. With the Grayscale Bitcoin trust (GBTC) being the largest such Bitcoin fund in the world, even a minor outcome in favor of Grayscale could come out to be a huge boost for the crypto community. The SEC Grayscale case will soon hit the ground running as arguments are set to be heard in the court starting in March 2023.
What To Expect From Grayscale SEC Case
Speaking to Yahoo News on Monday, Grayscale CEO Michael Sonnenshein spoke about the company’s action plan in the case. The company will base its argument in saying spot based Bitcoin ETFs will offer greater investment security and regulatory oversight than the futures based ETFs. In view of the liquidity issues with its parent company Digital Currency Group (DCG), the company recently said it would consider a tender of up to 20% of the shares. Responding about this proposal in the instance of the court’s ruling against approval of the Grayscale spot Bitcoin ETF, Sonnenshein said the tender offer would not really be an optimal solution overall.
The CEO said that huge leverage came out of the crypto ecosystem in the last two months. He also said the upcoming Ethereum Shanghai upgrade and the Bitcoin halving in 2024 could act as huge catalysts for the cryptocurrency market.
