Grayscale Prepares for Court Showdown with US SEC over Bitcoin ETF


The appellate court is currently reviewing the Grayscale’s request to review the SEC’s rejection decision. But Grayscale has stated that he won’t mind heading to the US Supreme Court if he loses the case on appeal. The crypto asset management company could also use the “en banc” option.

An en banc hearing would involve a group of judges within the city of DC who would discuss the matter together before making a final decision. This hearing differs from the normal hearing, where any judge gives a verdict on the matter. However, Grayscale cannot explore this option unless there is a strong reason to do so or other judges are unable to reach a decisive judgment on the case.

The US SEC has shown no interest in approving any Bitcoin ETF proposals so far. However, many crypto companies have submitted their Bitcoin ETF proposals in the hope that the SEC will one day approve one of these proposals. However, Grayscale is determined to have his Bitcoin ETF as it is the replacement for his famous Grayscale bitcoin trust (GBTC).

An approximate timeline of the court’s verdict

During the question and answer session, one of the questions Grayscale received was an estimate of the length of the court case. In his reply, Grayscale commented that he is not sure at the moment. However, prior federal litigation experience indicates that resolutions typically take an average of two years.

However, the firm hopes that this case will be in your favor no matter how long it takes to reach a final decision. The crypto market has been under a massive correction since the beginning of the year. Therefore, regulators are more critical of the operations that occur in the market.

Additionally, many of them are pushing their crypto policy adoptions faster than ever before. Many industry analysts predict that the US SEC will still approve a spot Bitcoin ETF as the crypto market matures over time. The Ycharts data showed that the SEC’s rejection of Grayscale’s proposal caused a 35% drop in shares of the Grayscale bitcoin trust (GBTC).

While speaking in an interview earlier this week, Grayscale CEO, Michael Sonnenscheinsaid Grayscale’s intention is for the SEC to provide its product with greater protection for investors by holding it to a higher standard.

He further said that converting GBTC to a spot Bitcoin ETF would unlock $1 billion worth of “unrealized equity value.” Like other crypto companies, Grayscale is also feeling the pressure of the current crypto winter. Last week, it announced the removal of five digital currencies from its large-cap digital fund.

According to the announcement, the move is an attempt to readjust the asset management firm’s portfolio to survive the current cryptocurrency bear market. Uniswap (UNI), BitcoinCash (BCH), Polkadot (DOT), Chainlink (LINK) Y Litecoin (LTC) are the five cryptocurrencies removed by Grayscale.

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