World’s largest bitcoin fund slams the SEC, sues over crypto ETF rejection

July 8, 2022 World Blockchain

Digital currency asset manager Grayscale is in a legal fight with the U.S. Securities and Exchange Commission over its latest rejection of the company’s prospective spot bitcoin exchange-traded fund.

Last Wednesday, the SEC denied Grayscale’s application to convert its bitcoin trust to a spot ETF. The company filed a lawsuit the same day.

Grayscale Bitcoin Trust, under the ticker GBTC, is the world’s biggest publicly traded bitcoin fund.

“We were simply asking the SEC to hold this product to a higher standard, to give it greater investor protection and give greater risk disclosure for investors,” Grayscale CEO Michael Sonnenshein told CNBC’s “ETF Edge” on Wednesday of this week. “Converting would unlock billions of dollars of unrealized shareholder value.”