Despite the bankruptcy of many crypto companies, Bitcoin seems to be holding its own. Certainly, this famous cryptocurrency has experienced one of the largest price drops since its creation. Nevertheless, its market remains fairly stable (so far anyway). Indeed, Bitcoin’s situation may change rapidly in the coming days. For many, the outcome of the Grayscale VS SEC case will determine the fate of this crypto. And precisely, the hearing date has just been set.
Reason for Lawsuit: SEC Opposes Conversion of Grayscale Bitcoin Trust (GBTC) to ETF
The Grayscale Bitcoin Trust (GBTC) is a crypto investment product expressly designed for individual investors. It allows them to buy and sell through personal brokerage accounts. According to the data, this investment trust owns 3.4% of the bitcoins currently in circulation. Concretely, GBTC shares only own Bitcoin. They do not use leverage or derivatives.
In October 2021, Grayscale makes an important announcement: NYSE Arca will file an application with the SEC to convert GBTC into a Bitcoin-based spot ETF. The goal is to allow investors to choose how they want to distribute their Bitcoin exposure. The request was denied by the SEC. The reasons given: risk of market manipulation and investor protection.
Soon the end of a legal drama of several months?
Not understanding the SEC’s decision, Grayscale appealed in June 2022. The case will be heard by the Columbia Court of Appeals. The date of the hearing has even already been fixed. In accordance with the prescription released by the court on January 23, it will be held on March 7 at 9:30 a.m. EST.
This date is of particular importance, especially for bitcoiners. Indeed, the outcome of the trial will set the fate of Bitcoin for months to come.
The court ruling in the Grayscale VS SEC case will inevitably affect the future of Bitcoin. Above all, it will mark a great turning point in the world of crypto. To be followed closely…
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