Breaking: Grayscale wins SEC lawsuit

1 year ago

The judge's bid does not warrant the eventual listing of a Grayscale spot Bitcoin ETF.

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Crypto plus manager Grayscale Bitcoin Trust (GBTC) has scored a large triumph against the United States Securities and Exchange Commission (SEC) successful its efforts to person its over-the-counter GBTC exertion into a listed Bitcoin ETF.

According to August 29 tribunal filings, U.S. Court of Appeals Circuit Judge Neomi Rao ordered Grayscale's petition for reappraisal beryllium granted and the SEC's bid to contradict the GBTC listing exertion to beryllium vacated. Previously, Judge Rao said that the SEC did not "offer immoderate explanation" arsenic to wherefore Grayscale was successful the wrong. However, the bid does not warrant the eventual listing of a Grayscale spot Bitcoin ETF.

Michael Sonnenshein, CEO of Grayscale investments, said connected Twitter that its ineligible squad is "actively reviewing" the tribunal opinion.

JUST IN

The D.C. Circuit ruled successful favour of @Grayscale successful our suit challenging the SEC's determination to contradict $GBTC's conversion to an ETF!

Thank you to everyone who has been connected this travel with us, particularly our investors. We are grateful for your enactment and…

— Sonnenshein (@Sonnenshein) August 29, 2023

On June 29, 2022, the SEC denied Grayscale's application to person GBTC into a spot ETF. The adjacent day, Grayscale's elder ineligible strategist, erstwhile U.S. Solicitor General Donald B. Verrilli Jr., filed a petition for reappraisal with the United States Court of Appeals for the District of Columbia Circuit. At the time, Michael Sonnenshein, CEO of Grayscale, said successful a connection the steadfast was "deeply disappointed" and "vehemently disagreed" with the SEC's determination to contradict their application.

Grayscale is the largest over-the-counter traded Bitcoin fund, with implicit $14 cardinal successful assets nether management. Earlier this year, shares of GBTC traded astatine nearly 50% discount to the nett plus worth owed to the firm's past ongoing litigation with the SEC and recognition concerns regarding its genitor Digital Currency Group (DCG).

In October 2022, Grayscale terminated worldly agreements with its spouse and integer currency broker Genesis Global. On Nov. 16, 2022, Genesis Global paused withdrawals, citing unprecedented marketplace turmoil amid the illness of cryptocurrency speech FTX. The steadfast was besides impacted by the illness of Singaporean crypto hedge money Three Arrows Capital, with $1.2 cardinal indebtedness owed to Genesis inactive unpaid.

In January 2023, it was disclosed that DCG owes creditors implicit $3 billion and is considering a $500 cardinal task superior portfolio sale. Genesis Global owes $900 cardinal unsocial to users of cryptocurrency speech Gemini's Earn program.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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