Grayscale Investments has sued the US Securities and Exchange Commission (SEC) after the regulator rejected the company's application to convert Grayscale Bitcoin Trust (GBTC) into the first spot bitcoin exchange traded fund (ETF).
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According to the filing, Grayscale is confident: the SEC must approve the proposal because it had earlier approved the listing and trading of ETFs and ETPs (exchange traded products) that hold CME bitcoin futures.
The move comes after the SEC denied Grayscale's application to convert GBTC, citing market manipulation issues and the lack of a surveillance-sharing agreement.
In March, Grayscale CEO, Michael Sonnenschein, emphasized that its number one priority for the firm is to convert its GBTC fund into an ETF. He also added that the SEC has created an "unfair playing field and forced investors into a futures-based ETF because it’s the only product that exists."
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