Regulation
Grayscale-SEC Fight Could Clear the Way for Anybody to Speculate on Bitcoin
- Grayscale seeks approval to convert Bitcoin trust into an ETF
- Regulators say Bitcoin too ripe for fraud, manipulation
The Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Graeme Sloan/BloombergThis article is for subscribers only.
Federal appeals court judges in Washington grilled the US Securities and Exchange Commission on its decision to reject a proposed Bitcoin exchange-traded fund when it had earlier approved a similar product based on Bitcoin futures.
Grayscale Investments LLC wants to convert its $14 billion Bitcoin trust, the largest investment vehicle tied to the No. 1 cryptocurrency, into an ETF. But the SEC rejected the plan in June, saying crypto markets are too ripe for fraud and manipulation. Grayscale sued, asking the DC Circuit Court to overturn a decision the company called arbitrary and discriminatory because the SEC had already approved ETFs that track Bitcoin futures.