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Grayscale

SEC DECLINES GRAYSCALE’S REQUEST FOR SPOT BITCOIN ETF CONVERSION 

The U.S. The Securities and Exchange Commission (SEC) has declined the conversion of the Grayscale Bitcoin Trust into a spot Bitcoin ETF. Grayscale Investments has responded by filing a lawsuit that challenges the decision, which may be settled late next year or early 2024.

According to the filing, the SEC stated that the application did not show that it was not “designed to prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest.”

Grayscale, one of the biggest institutional providers of crypto investments, had requested for the conversion last year. They had made it clear that it would answer with action, even asking for the public to demonstrate support for the decision. 

RELATED: GRAYSCALE READIES ITSELF FOR SEC RULING ON SPOT ETF

The SEC was looking towards a deadline of July 6 for a decision after they went through multiple hitches.

Earlier in the week, the SEC had also declined Bitwise’s request for a spot bitcoin ETF. The agency has not authorized any such ETF so far, offering investor protection and market manipulation as the reasons.

This has been the subject of most debates, with those who support the approval saying it would be pertinent in fighting those concerns. The SEC has authorized many future-based ETFs and Grayscale debates that it does not make sense to enable futures ETFs under the Securities Exchange Act of 1934, but declines spot ETFs. Because of this Grayscale feels the need to file a lawsuit. Grayscale had warned the SEC about filing a lawsuit against them.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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