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According to Grayscale CEO Michael Sonnenshein, the company is not ruling out legal action against the Securities and Exchange Commission (SEC) if the agency continues to disapprove of the spot bitcoin ETF launch. The crypto investing giant has sent the SEC the application to transform its Grayscale Bitcoin Trust into a spot ETF that tracks Bitcoin as its underlying asset.
In a recent interview with Bloomberg, Michael Sonnenshein stated that his firm would consider filing a lawsuit against the SEC if the regulatory body denied its application for a Bitcoin spot ETF. This follows the firm’s attempts to transform its Bitcoin Trust into an ETF.
In response to a query about whether his company would examine the efficacy of an Administrative Procedure Act Lawsuit, Sonnenshein said that he believes all options are on the table. This implies Grayscale may challenge the commission if the agency refuses to allow Grayscale to convert its Trust to an ETF.
He continued by emphasising the necessity of individuals reaching out to the SEC in response to the agency’s call for public opinions, which many have already done. By July 6, the SEC has to decide if it allows the Grayscale Bitcoin Trust to be converted into a Bitcoin spot exchange-traded fund. Grayscale is devoting “all available resources” to get approvals by then.
Grayscale CEO Michael Sonnenshein. Source: Grayscale
He underlined the fund’s sheer size of the GBTC fund, highlighting its 800,000 accounts in the United States. Since 2015, the Trust has traded, and Grayscale’s CEO stated that keeping the Trust in its current form rather than converting it to an ETF puts investors at risk. Because investors cannot benefit from the safeguards given by the “ETF wrapper,” Sonnenshein said that the SEC is not doing all [it] can to protect investors truly.
He did, however, consider the SEC’s approval of a Bitcoin futures ETF and President Biden’s recently signed executive order to be such progress. He also stated that the team at Grayscale remains confident of the Commission approving the long-awaited Bitcoin spot ETF.
“Ultimately, we believe it’s a matter of when not a matter of if a spot Bitcoin ETF is approved,” he said.