One of the largest virtual asset managers in the world, Grayscale, has brought a case against the United States because the Securities and Exchange Commission (SEC) rejected its application for a Bitcoin Spot ETF.
SEC rejects Grayscale’s Bitcoin Spot ETF
The application to establish a Bitcoin Spot ETF was denied by the SEC on Wednesday, June 29, 2022, on the grounds that Grayscale had not complied with requirements to prevent dishonest and deceptive market practices. As possible sources of deception and manipulations in the spot Bitcoin Market, the Commission mentioned whale manipulation, wash trading, exchange and network hacks, stablecoin exploitation, and the spread of false information.
According to the SEC, the decision to deny the application was not made after “considering the utility or worth of Bitcoin or blockchain tech generally, as an invention or an investment.”
Grayscale to contest the decision
In response to the denial, Grayscale filed a complaint against the securities watchdog. Michael Sonnenshein, the CEO of Grayscale, claims that the SEC broke both the Administrative Procedure Act and the Securities Exchange Act.
The US Court of Appeals for the District of Columbia has received a “petition for review” from the crypto asset manager. Grayscale is already contesting the SEC’s move to deny Grayscale Bitcoin Trust’s (GBTC) request to become a spot ETF. Grayscale has stated that it will keep using all of its resources to support its investors and work for the introduction of the first Bitcoin Spot ETF in the United States.
On the other hand, Jacob Asset Management disclosed on June 30 that it would unveil the first bitcoin ETF in Erope on the Euronext Amsterdam Exchange. The Guernsey Financial Services Commission (GFSC) granted regulatory permission for the Jacobi Bitcoin ETF in October 2021, and it will start trading on the Euronext in July under the ticker BCOIN. Fidelity Digital Assets will offer custody services, with Flow Traders and DRW acting as market makers to facilitate trade. Investors will access the fundamental activity of this fascinating asset class through the Jacobi Bitcoin ETF.