Grayscale Suing SEC After Its Bitcoin ETF Is Rejected

In a May meeting with U.S. regulators, Grayscale argued that converting into an ETF would unlock as much as $8 billion in value for investors.

In a statement, Donald Verrilli, a law partner at Munger, Tolles & Olson representing Grayscale, said that in rejecting the application the SEC was “failing to apply consistent treatment to similar investment vehicles” in violation of federal law.

“We are deeply disappointed by and vehemently disagree with the SEC’s decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market,” Sonnenshein, Grayscale’s CEO, said in the statement.

Bitcoin is on pace for its biggest quarterly decline in more than a decade. The largest cryptocurrency by market value fell about 6% to $18.985 as of 6:55 a.m. in New York, and is down around 58% since March, the biggest drop since the third quarter of 2011, when the digital asset was still in its infancy.

–With assistance from Allyson Versprille.

(Image: Alexey Novikov/Adobe Stock)