Grayscale InvestmentsĀ® Prevails in Lawsuit Against the SEC to Convert GBTC to an ETF
STAMFORD, Conn., Aug. 29, 2023 (GLOBE NEWSWIRE) -- Grayscale InvestmentsĀ®, the worldās largest digital currency asset manager, today announced the D.C. Circuit Court of Appeals ruled in Grayscaleās favor in its lawsuit challenging the decision by the Securities and Exchange Commission (SEC) to deny conversion of Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC) to an ETF*.
The Court ruled in favor of Grayscale, stating the Firm āpresented substantial evidence that Grayscale is similar, across the relevant regulatory factors, to bitcoin futures ETPs. The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscaleās proposed bitcoin ETP. In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful. We therefore grant Grayscaleās petition for review and vacate the Commissionās order.ā
āThis is a historic milestone for American investors, the Bitcoin ecosystem, and all those who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper,ā said Grayscale CEO Michael Sonnenshein. āGrayscale has adhered to U.S. financial rules and regulations in building our product suite since our founding in 2013, underpinned by one fundamental belief: investors deserve transparent, regulated access to crypto. Itās incredibly exciting that we are one step closer to making a U.S. spot Bitcoin ETF a reality.ā
āWe appreciate that the D.C. Circuitās opinion acknowledged that this case presented a straight-forward question about equal treatment under the law,ā said Grayscale Chief Legal Officer Craig Salm. āWe are incredibly grateful to our legal teams at Munger, Tolles and Olson and Davis Polk and Wardell, and will be working closely with the SEC on next steps to bring GBTC to NYSE Arca as a spot Bitcoin ETF.ā
*We use the generic term āETFā to refer to exchange-traded investment vehicles, including those that are required to register under the Investment Company Act of 1940, as amended (the āā40 Actā), as well as other exchange-traded products that are not subject to the registration requirements of the ā40 Act.
About Grayscale InvestmentsĀ®
Grayscale enables investors to access the digital economy through a family of regulated, and future-forward investment products. Founded in 2013, Grayscale has a proven track record and deep expertise as the worldās largest digital currency asset manager. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. Grayscale products are distributed by Grayscale Securities, LLC (Member FINRA/SIPC). For more information, please follow @Grayscale or visit grayscale.com.
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