After Grayscale’s utility to transform its Grayscale Bitcoin Belief (GBTC) right into a Bitcoin (BTC) exchange-traded fund (ETF) was denied, the agency launched a authorized problem in opposition to the USA Securities and Exchanges Fee. Following these occasions, the group responded with varied reactions, from accusing the SEC of value manipulation to suggesting completely different options.
Redditor u/ThatsMRcurmudgeon2u, who launched themself as a securities lawyer, weighed in on the matter. Based on the Redditor, many anticipated the lawsuit, as SEC Chair Gary Gensler has made it clear that he needs exchanges to register with the SEC. The Redditor additionally accused the SEC of “holding GBTC hostage.”
Lawyer Jake Chervinsky tweeted that the ETF denial was “deeply disappointing” and defies federal legislation and customary sense. He identified that the SEC’s position must be to guard buyers and argued that an ETF is a greater product for them.
Based on Twitter consumer Ann, provided that the SEC permitted an ETF that shorts Bitcoin, it could be working to “suppress the worth of Bitcoin.” Ann argued that this isn’t the position of the SEC.
“However, Bitcoin advocate and creator Vijay Boyapati recommended a unique route. Boyapati mentioned that a greater transfer could be to “wind down the fund” and return the Bitcoin to buyers. The creator criticized Grayscale’s 2% charges and urged the agency to “do the fitting factor.”
A a lot better answer could be to wind down the fund and return the underlying #bitcoin to buyers, who’re presently being milked for an outrageous 2% per 12 months. Do the fitting factor, Grayscale.
— Vijay Boyapati (@real_vijay) June 30, 2022
Redditor u/Percyheckendorf argued that the SEC’s transfer to disclaim the ETF is dangerous for pensioners, as pension funds can be “caught shopping for equities,” which would not have as a lot potential as Bitcoin.
Associated: Elusive Bitcoin ETF: Hester Peirce criticizes lack of authorized readability for crypto
In a letter to buyers on Monday, Grayscale introduced that the SEC acquired 11,400 letters associated to the proposed Bitcoin ETF. Based on the agency, 99% of the letters have been in help of the ETF. Regardless of these letters of help, it was nonetheless not permitted.
