• The CEO of Grayscale Investments, Michael Sonnenshein, appeared in an interview on „What Bitcoin Did“ and discussed the lawsuit against the US Securities and Exchange Commission (SEC) that was started in June 2022.
• Sonnenshein emphasized the importance of a spot Bitcoin ETF, which could help avoid a 45% discount to its net asset value. He also noted that if they lose their appeal, they may go for a re-appeal in the United States Supreme court.
• The CEO expects a decision in the lawsuit by the fall of 2023 and oral arguments for the case will begin on 7 March.
Grayscale’s Lawsuit Against SEC
Grayscale Investments CEO Michael Sonnenshein recently appeared on “What Bitcoin Did” to discuss his company’s ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC). This legal battle began in June 2022 when Grayscale applied to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF).
Why an ETF is Important
Sonnenshein explained why getting GBTC converted into an ETF is important; it would ensure that its share price remains close to or equal to its net asset value, avoiding the current 45% discount it often experiences. However, despite this need for an ETF conversion, Grayscale’s application was rejected by regulators mid-2022, leading them to file a lawsuit as their last resort for investors‘ protection.
Grounds for Litigation
The CEO argued that when federal agencies treat two similar issues differently, it violates U.S administrative procedures act – citing how BTC futures ETFs were approved while spot BTC ETFs were denied as evidence. In addition, he noted that over one million investor accounts all over the world own GBTC and are counting on Grayscale to do what is best for them.
Supreme Court Appeal
If their appeal fails, Sonnenshein suggested they might take up their case with the U.S Supreme Court although there was no operational reliance between his firm and Genesis – another DCG subsidiary under Chapter 11 bankruptcy proceedings at press time.
Expected Decision Date
In conclusion, Sonnenshein stated that he expects a decision in the lawsuit by Fall 2023 with oral arguments beginning on 7th March 2021