Spot Bitcoin ETF: This firm is considering legal recourse against SEC over the issue

ambcrypto.com:

The US Securities and Exchange Commission (SEC) ongoing lawsuit with Ripple Labs had waged on since December 2021, although there has been no definitive outcome as of yet. Now, another player in the digital assets space is considering suing the SEC if things go south.

Can the regulatory watchdogs handle another one?

In a Bloomberg interview, Grayscale‘s CEO opined that his company would consider suing the SEC if it did not approve its Bitcoin spot ETF. The Securities and Exchange Commission’s final deadline to rule on the digital-asset manager’s application to convert the Grayscale Bitcoin Trust into a physically-backed ETF was 6 July.

Grayscale CEO Michael Sonnenshein would consider an Administrative Procedure Act (APA) lawsuit if the regulatory agency delayed it further; he asserted:

“I think all options are on the table come July.”

Thereby showcased importance of standing up for investors who had suffered extensively. In addition, the SEC had allowed Bitcoin derivatives-backed ETFs to trade while continually denying spot ETF applications, which made things worse. As covered before, post-SEC’s nod, three Bitcoin futures ETFs launched in late 2021.

On the other hand, the conversion of the Grayscale Bitcoin Trust into a Bitcoin spot exchange-traded fund filed in October 2021 faced rejection in February this year. SEC cited a need for a more extended period to consider the proposed changes while mentioning risks and concerns regarding the same. Nonetheless,

“The Grayscale team has been putting the full resources of our firm behind converting GBTC, our flagship fund, into an ETF. Investors must know that we have and will continue to advocate for them.”

Investors in all 50 states owned GBTC, with around 800,000 accounts in the