Grayscale Might Take Legal Action If The SEC Rejects Its BTC Spot ETF Application- Grayscale CEO

During his latest interview with Bloomberg, Grayscale CEO mike Sonnenshein stated that the asset management firm might consider a lawsuit action against the SEC should the financial regulator reject its BTC spot ETF application. However, the SEC hasn’t made any decision regarding the application with a decision scheduled to be taken on the 6th of July.
Grayscale’s Other ETF Products
Grayscale is popular for its GBTC trust fund which has been running successfully since its inception with the amount under the management of this trust being about $32B. The crypto asset management firm also runs other ETFs aside from the popular GBTC. The total value of assets under the firm’s management is estimated to be nearly $45B.
Its recent BTC ETF application has been filed with the SEC since last October. However, the SEC postponed the decision to approve or disapprove the application to last month before postponing the decision to July 2022 again. The Grayscale CEO revealed during the interview that the firm would consider all available alternatives to get its spot BTC ETF approved.
Sonnenshein Remains Optimistic
Sonnenshein explained that Grayscale wants to launch this spot BTC ETF so that investors and potential investors can decide whether to invest in spot products or futures-based products based on their appetite for risks.
However, he remained optimistic regarding the approval saying “it is only a matter of time and not whether the SEC would approve a spot BTC ETF.” Besides its spot BTC ETF application, Grayscale has also submitted a fintech-related ETF application to the SEC.
While this Fintech-related ETF application has also not been approved yet, many crypto analysts claim that the SEC is more likely to approve this newest Grayscale application than the previous one. However, time will tell which of them would be approved or which one of them the SEC will approve first before the other.
SEC’s Reluctance To Approve An ETF Product
Despite receiving several ETF-related applications, the SEC hasn’t shown any disposition towards approving any direct BTC ETF. The SEC has claimed that the reason for its reluctance in approving any of the numerous ETF applications on its desk is that there isn’t any investor protection in case these investments turn awry.
But many top crypto players opined that an SEC ETF approval would legitimize the market which would have the consequent effect of protecting investors’ investments. Hence, they appealed to the SEC to take a positive stance regarding these applications. The SEC has received several letters from various investors urging it to approve Grayscale’s ETF application. While the SEC has approved some futures-based ETFs, many investors insist on approval for a spot ETF.
One of the recently approved futures-based ETFs (the Proshares BTC strategy ETF) has been doing exceptionally since its inception. However, crypto investors still want more ETPs, especially a spot BTC ETF. Other BTC ETFs such as those of Van Eck, valkyrie would provide stiff competition for Grayscale’s BTC ETF even if the SEC eventually approves it.
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