Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
The largest crypto investment fund manager sued the SEC after the agency formally rejected its application to transform GBTC into a physical Bitcoin ETF.
- The SEC officially rejected Grayscale’s ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. application.
- Grayscale applied to convert its Bitcoin (GBTC) fund into a spot a contract or transaction buying or selling a cryptocurrency for immediate settlement, or payment and delivery, of the cryptocurrency on the market. ETF.
- One more rejection: the wait continues for a first Bitcoin ETF in the US.
Just as he promised he would, Grayscale Investments is suing the U.S. Securities and Exchange Commission (SEC) after the agency rejected its application for an ETF of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
The U.S. regulator issued an official response on Wednesday to the request for Grayscale to convert your investment vehicle Grayscale Bitcoin Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. (GBTC) in an exchange-traded fund (ETF) of Bitcoin in cash. The SEC rejected the proposal arguing that the firm had failed to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. several of their concerns, including the prevention of market manipulation.
In addition, she cited concerns about the role ofTether (USDT) in the ecosystem Bitcoin and the lack of a shared policing agreement between a “ regulated regulation is when something is controlled by a specific set of rules. market an area or arena, online or offline, in which commercial dealings are conducted. of significant size “and cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges, according to collected CoinDesk .
Grayscale sues SEC
The giant digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset manager had signalled its intentions to convert its reputed GBTC fund into an ETF of Bitcoin early last year. Later that year, in October, the company filed an official application to launch the product. However, the decision was delayed several times because the SEC requested additional information and comments from the public. The deadline for the regulator to provide a response was July 6.
In a press release on Wednesday, Grayscale reported that he was presenting una petition for review before the Court of Appeals U.S. District of Columbia Circuit, challenging the SEC’s decision to deny GBTC’s conversion to an ETF. According to CoinDesk The lawsuit came just hours after the federal agency’s response.
Donald B. Verrilli Jr., who recently joined the legal team at Grayscale and previously served as U.S. attorney general, he noted in the ad:
As Grayscale and the Davis Polk & Wardwell team have pointed out, the SEC is not applying consistent treatment to similar investment vehicles and is therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and the Securities Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Act of 1934.
Grayscale also cited in its statement the broad support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. its ETF plan had received among investors. The firm had conducted a campaign in which more than 11,400 investor petitions were sent to the SEC, 99% of which were in favor of the fund’s transition to an ETF of Bitcoin .
Otro rechazo para un ETF de Bitcoin
The SEC’s response is not new and adds to the list of rejections of ETFs of Bitcoin cash, also called physicists . To date, the regulator has only approved futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. exchange-traded funds of Bitcoin The cryptocurrency is based on the derivatives market and not on the cryptocurrency itself.
SEC Chairman Gary Gensler has also insisted that the agency still has too many concerns to greenlight an investment product with those features and, in that regard, has been consistent in wanting to see greater oversight of cryptocurrency exchanges before approving an ETF of Bitcoin in cash.
In this regard, Grayscale has made a strong case that it is inconsistent to approve an ETF based on futures of Bitcoin but not allow one based on the underlying investment. As you recall CoinDesk Verrilli, the firm’s senior legal strategist, said in early June that the SEC’s approval of futures ETFs indicates that the underlying market should be considered reliable.
“ Here is a compelling, common sense argument, and we hope to resolve this issue in a productive and expeditious manner. ” he added in today’s statement.
Grayscale ya had advanced that it would take legal action against the SEC if its application was rejected. Later this week, el CEO Michael Sonnenshein dijo that the company was preparing “for all possible post-failure scenarios ”.
It should be noted that GBTC’s plans to convert to an ETF are especially important to the fund manager, as it has seen its main fund of Bitcoin be quoted with discounts of more than 30% in the last few months.
- SEC Commissioner Hester Peirce: “The Commission’s refusal to accept a Bitcoin ETF is puzzling.”
- Grayscale plans to launch first cryptocurrency ETF in Europe
- ProShares Launches New ETF That Lets Investors Bet on Bitcoin’s Decline
Article by Hannah Estefania Perez / DiarioBitcoin
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