grayscale investments

Grayscale Faults SEC Over the “Discriminatory” Behaviour In the Lawsuit

The world’s largest crypto asset manager, Grayscale Investments lashes at the U.S. Securities and Exchange Commission (SEC) for rejecting the spot Bitcoin ETF.

Grayscale mentioned that the SEC is “capricious” and “discriminatory” in its assessment of the spot Bitcoin market as the securities regulator has allowed futures-based Bitcoin ETFs and they are exposed to similar concerns. 

Grayscale is looking to convert its $12 billion Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, the SEC has turned down this proposal citing risks of fraud and market manipulation.

In its lawsuit against the SEC, Grayscale argues:

“The test the SEC has applied to Bitcoin-related ETFs, and only Bitcoin-related ETFs, is flawed and has been inconsistently applied with a ‘special harshness’ to spot Bitcoin ETFs”.

Grayscale has decided to pursue legal action against the SEC and sued the securities regulator in mid-2022. The Grayscale Bitcoin Trust is currently trading at a record 25% discount in the market. This means seeking exposure to Bitcoin via Grayscale could be at just $12,500 i.e. 35% discount from the current price. This shift would also help to close the fund’s discount to the net asset value (NAV).

Yahya Imran is a crypto trader and blockchain content creator. He was a Campus Ambassador for FTX Africa and worked as a video content creator in the content Department of FTX Africa. He is a professional Video Editor and Video animator. He is the founder of Coinsplug.

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