Grayscale CEO emphatically stated that all options are on the table as the company put all its resources into the conversion of its Bitcoin ETF. This legal move comes in preparation to contest the SEC decision if it rejects Grayscale’s Bitcoin trust.
Grayscale CEO Michael Sonnenshein said the company is preparing for a legal battle if the US Securities and Exchange Commission (SEC) rejects Grayscale’s Bitcoin Spot exchange-traded fund (ETF).
Sonnenshein was asked by Bloomberg on Tuesday if he would consider filing a lawsuit under the Administrative Procedure Act (APA) if the financial regulator declined its Bitcoin Spot ETF application.
He said, “I believe all choices are on the table,” emphasizing the need of continuing to work for investors. The next decision date for the investment product approval or refusal is July 6, 2022. It was originally submitted in October 2021 and was earlier postponed in February.
“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.”
Grayscale announced plans to transform its Bitcoin Trust into a Bitcoin (BTC)-settled ETF in October 2021. The SEC postponed its decision to approve the product until December 2021, citing the need for more time to review the proposed revisions, and they did so again in February.
The SEC invited public comments on Grayscale’s proposed revisions. According to a February review of the response gathered by the regulator, 95 percent of respondents supported the move. Grayscale has set aside a section of its website to encourage investors to make comments to the Securities and Exchange Commission.
“Today, investors in all 50 states possess GBTC, and there are over 800,000 accounts in the United States waiting for it to be transformed into an ETF,” Sonnenshein added.
“It was a very exciting announcement that we now have Bitcoin futures ETFs out in the market, but unfortunately, that‘s forced investors into those Bitcoin futures products, because those are the only ones that exist.”
Grayscale was also encouraged by the SEC’s support for crypto exchanges registering with the regulator, as well as President Biden’s recent executive order on crypto, according to Sonnenshein.
“Ultimately, we believe it‘s a matter of when, not a matter of if a spot Bitcoin ETF is approved.”
