Grayscale Brief Says SEC Unfairly Rejected Bitcoin ETF Bid

Firm wants to convert a $12 billion Bitcoin trust into an ETF
Digital-asset manager files opening brief in suit against SEC

WATCH: Grayscale Investments CEO Sonnenshein discusses why he believes the US SEC acted arbitrarily in rebuffing its bid to convert its $12 billion spot Bitcoin trust into an exchange-traded fund.Source: Bloomberg

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By Sunil Jagtiani

October 12, 2022 at 2:45 AM UTC

Updated on

October 12, 2022 at 10:38 PM UTC

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Grayscale Investments LLC, the largest crypto asset manager, said the US Securities and Exchange Commission acted arbitrarily earlier this year in rebuffing a bid to convert its $12 billion spot Bitcoin trust into an exchange-traded fund.

The rejection over the risk of fraud and manipulation in the spot Bitcoin market is “capricious” and “discriminatory” because the SEC has allowed futures-based Bitcoin ETFs and they are exposed to similar concerns, Grayscale said Tuesday in the opening brief of its lawsuit against the regulator.