Bitcoin ETF rejection could trigger Greyscale to sue the SEC

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Greyscale Investments might sue the U.S. Securities and Exchange Commission (SEC) if its filing to convert its US$30 billion Bitcoin trust into an exchange-traded fund (ETF) is rejected, company CEO Michael Sonnenshein told Bloomberg.

See related article: Bitcoin price hits all-time high after ProShares ETF debut

Fast facts

  • The SEC’s deadline to approve or reject Greyscale’s filing is July 6, after which Sonnenshein said “all options are on the table.”
  • In seeking legal action, Greyscale would argue that the SEC has granted approval to Bitcoin derivatives-backed ETFs but has repeatedly denied spot ETF applications.
  • A spot-traded ETF tracks the price of an underlying asset as a stock, granting easier access to the asset for investors.
  • Greyscale Investments operates over a dozen funds with almost US$40 billion in assets under management and the Greyscale Bitcoin Trust currently trades with a discount of over 20% compared to the net asset value.
  • Spot Bitcoin ETFs are traded in countries like Canada, Brazil and the United Arab Emirates.

See related article: Ethereum ETFs come to Canada while US waits for SEC on Bitcoin ETFs

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