Following the bankruptcy issue of Genesis Global, a district of Columbia Court of Appeals has set the date for Grayscale’s legal action against the Securities and Exchange Commission (SEC) to March 7 2023 as opposed to the initial date in April.
The District of Columbia Court of Appeals has scheduled March 7 to hear oral arguments in Grayscale’s complaint against the U.S. Securities and Exchange Commission, in accordance with a court order issued on January 23. (SEC).
It was anticipated that the oral arguments will start in the second quarter of 2023. However, the court has postponed the case, and as of March 7 at 9:30 AM ET, both parties will argue their cases before the court, according to CNBC on January 24.
After the request to convert the Grayscale Bitcoin Trust (GBTC) to a Bitcoin ETF was denied, Grayscale launched a lawsuit against the SEC in June 2022. The SEC denied the application, citing worries about market manipulation and investor safeguards as justifications.
The action may have been prompted by Genesis Capital, a sibling company of Grayscale and a cryptocurrency lender, filing for Chapter 11 bankruptcy last week. Due to the FTX bankruptcy, Genesis halted withdrawals, redemptions, and the creation of new loans.
Investors’ worries about GBTC’s growing discount premium rates after Genesis’ bankruptcy have increased in the meanwhile. The GBTC now has $14.5 billion in assets under management and a negative premium rate of 41.5%.
The Grayscale Bitcoin Trust’s management and sponsorship have been suggested to be taken up by Valkyrie Investments and Osprey Funds (GBTC). According to the companies, shareholders will have a better choice for reduced management fees and a redemption scheme.
