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SEC rejected Grayscale Bitcoin ETF application

source-logo  coinnounce.com 30 June 2022 04:44, UTC

The U.S. Securities & Exchange Commission is set to announce its decision on a bitcoin-related spot exchange-traded fund (ETF) proposal submitted by investment giants Bitwise and Grayscale. The commitment is expected to make this announcement the former before July 1 and July 6.

U.S. regulators are likely to reject the applications, according to Bloomberg Intelligence James Seyffart. Experts believe the committee could issue two rejection letters on Friday, July 1, 2022.

Today, the SEC denied our application to convert $GBTC to a spot #Bitcoin ETF. 🧵

— Grayscale (@Grayscale) June 30, 2022

In the past, the regulator has rejected similar proposals as it claims the crypto market is vulnerable to price manipulation, cyber-attacks, scams and frauds, insider trading, and more.

U.S. SEC Chairman Gary Gensler has compared cryptocurrency to the ” Wild West” for its lack of regulation.

Grayscale Investments said it had sued the U.S. Securities & Commission after the agency rejected a bid to convert its Bitcoin trust into an exchange-traded fund. (1)

Our team has filed a Petition for Review with the D.C. Circuit Court of Appeals. This document officially initiates a lawsuit contesting the SEC’s decision.

— Grayscale (@Grayscale) June 30, 2022

In 2021, the Commission approved a Bitcoin-related futures ETF based on Chicago Mercantile Exchange (CME) contracts. The regulator claims that futures contracts in the country are sufficiently regulated to allow BTC futures ETF, but the spot market “lacks” the same level of consumer protection.