Crypto adoption

Grayscale: Preparing for a legal battle with the U.S. SEC over the Bitcoin ETF

So far, the US SEC has shown no interest in approving Bitcoin ETF proposals.

US SEC GRAYCALE BITCOIN ETF

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The appeals court is currently reviewing the case Grayscale’s request to review the SEC’s rejection decision. But Grayscale said it would not hesitate to go to the U.S. Supreme Court if it lost the case in the appeals court. The crypto asset management company could also use the en on the bench option.

An en banc hearing would involve a panel of judges within the city of DC discussing the case together before making a final decision. This hearing differs from a normal hearing, where a judge renders a verdict on the case. However, Grayscale cannot explore this option unless there is a strong reason to do so or the other judges are not able to reach a decisive ruling on the case.

So far, the US SEC has shown no interest in approving Bitcoin ETF proposals… However, many crypto-companies have submitted their Bitcoin ETF proposals in hopes that the SEC will one day approve one of these proposals. However, Grayscale is determined to have its Bitcoin ETF, as it is a replacement for its famous Grayscale bitcoin trust (GBTC)..

A rough timeline of the court’s verdict

During the Q&A session, one of the questions posed to Grayscale was about the estimated duration of the court case. In his response, Grayscale indicated that he was unsure of the timing of the event. However, past experience with federal litigation indicates that resolutions take an average of two years.

However, the firm expects this case to go its way, regardless of how long it takes to reach a final decision. The crypto-market has been undergoing a massive correction since the beginning of the year. As a result, regulators are more critical of the transactions taking place in the market.

In addition, many of them are accelerating their cryptocurrency policies. Many industry analysts predict that the U.S. SEC will still approve a Bitcoin spot ETF as the cryptocurrency market matures. Ycharts data shows that the SEC’s rejection of Grayscale’s proposal led to a 35% drop in the company’s shares. Grayscale bitcoin trust (GBTC)…

In an interview early last week, Grayscale CEO Michael Sonnenscheina said that Grayscale’s intention is for the SEC to give its product greater protection for investors by holding it to a higher standard.

He added that converting GBTC into a cash Bitcoin ETF would unlock $1 billion in “unrealized equity value.” Like other cryptocurrencies, Grayscale is also feeling the pressure of the current crypto-winter. Last week, it announced the withdrawal of five digital coins from its large-cap digital fund.

According to the announcement, the move is an attempt to realign the asset management firm’s portfolio to survive the current cryptocurrency bear market. Uniswap (UNI), Bitcoin Cash (BCH), Polkadot (DOT), Mesh (LINK) y Litecoin (LTC) are the five crypto-currencies withdrawn by Grayscale.

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