A company that pays itself as the world’s largest crypto asset manager has filed a legal challenge against US securities regulators after they rejected a listing application. Bitcoin-focused fund on a stock exchange.
Grayscale filed a lawsuit in a federal appeals court on Wednesday, after Securities and Exchange Commission (SEC) said the proposed fund did not meet investor protection requirements and lacked adequate protections against fraud and manipulation.
The company wants to list its Grayscale Bitcoin Trust (GBTC) fund on the New York Stock Exchange’s Arca trading platform as an exchange-traded fund, an investment fund that tracks the movements of specific assets , often focusing on a specific area.
The company said the legal action was called due to the “arbitrary and erratic actions of the SEC and its discriminatory treatment of issuers.”
“We are extremely disappointed and completely disagree with the SEC’s decision to continue denying the position Bitcoin ETF from coming to the US market,” Grayscale CEO Michael Sonnenshein said in a statement.
The GBTC ETF “will unlock billions of dollars in investor capital while bringing the world’s largest Bitcoin fund deeper into US regulation,” Sonnenshein added.
The SEC has denied several requests similar to Grayscale in recent months, including from Fidelity, First Trust and SkyBridge Capital.
Bitcoin price has been collapsing since the start of the year, having recently dropped below $20,000 (nearly Rs 16 lakh) on Wednesday, compared with an all-time high of $69,000 (nearly Rs 54 lakh) in November 2021 .
The leading cryptocurrency, famous for its volatility, has been weighed down by risk-averse investors in a market worried about inflation and rising interest rates in Europe and the United States.
Grayscale argued that the SEC’s decision is inconsistent with previous decisions to allow the listing of certain ETFs linked to Bitcoin futures.
“If regulators are comfortable with ETFs holding derivatives of a given asset, then logically they should be comfortable with ETFs holding the same asset class,” the company said. there.