Grayscale, the world’s largest digital currency asset manager, may get into chaos with the SEC. For a long time, CEO Michael Sonnenshian has been trying to convert the Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). But the Securities and Exchange Commission is not ready to cooperate.
The SEC has been accepting the first futures-backed Bitcoin ETF but denies applications for spot ETF. During an interview with Bloomberg News, Grayscale shared that they won’t refrain from imposing an Administrative Procedure Act lawsuit on the Securities and Exchange Commission.
The CEO said, “I think all options are on the table come July” if the SEC rejects the filing. “The Grayscale team has been putting the full resources of our firm behind converting GBTC, our flagship fund, into an ETF.”
However, the SEC has said, “When reviewing bitcoin spot ETPs, the commission must apply all the standards of the Exchange Act, which it has followed in connection with its orders considering previous proposals to list bitcoin spot ETPs,” while citing concerns regarding market manipulation. The regulator is still in doubt if spot ETP has the potential to prevent illicit activities in the market.