SEC has no grounds to reject GBTC bitcoin-ETF conversion request

Sep 06, 2023
Grayscale Investments has told the US Securities and Exchange Commission that it has no basis in denying its request to convert Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.
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Recall that last week a federal appeals court ordered the SEC to reconsider its denial of Grayscale Bitcoin Trust’s conversion request due to the Commission’s failure to appropriately explain its decision.

Grayscale officials noted that if there was any difference between this and a futures product, it had already been addressed in one of the 15 SEC rulings that rejected the spot BTC rule.

Circuit Judge Neomi Rao agreed with Grayscale’s position that its proposed product was not significantly different from exchange traded BTC futures (ETP) products.

The company’s lawyers, in turn, argued that the SEC should issue a favourable ruling on Grayscale Bitcoin Trust’s conversion issue.