Grayscale says the rejection of GBTC into the spot BTC ETF conversation was illogical

Grayscale responded to a brief filed by the US Securities agency over GBTC to Bitcoin spot ETF conversation application. 

Grayscale is a subsidiary of Digital Currency Group (DCG). Grayscale provides traditional funds, backed by Bitcoin & Ethereum-like crypto assets. In the present time, DCG is in a bad financial position as its subsidiary Genesis Global Trading is in a situation to file for bankruptcy. On Thursday of this week, DCG stated that it will dilute its stakes to conduct $3 Billion to the Genesis platform.

Around a month ago, in Dec 2022, The United States Securities and Exchange Commission (SEC) filed a brief in response to the questions raised by Grayscale over its Bitcoin spot ETF application rejection. Recently, Grayscale published a new blog post in response to the SEC brief. 

Grayscale stated that approval for GBTC to convert into Bitcoin spot ETF will unlock huge numbers of advantages for GBTC investment.

“For more than 850,000 investors, converting GBTC to a spot Bitcoin ETF would unlock over $4 billion of value by providing the regulatory relief necessary for the product to simultaneously create and redeem shares,” Grayscale added.

According to Grayscale, the Bitcoin spot ETF form of GBTC will provide a better regulatory environment for the investors and it will also ensure the safety of the investors. 

Further Grayscale criticised the SEC agency and claimed that rejection for Bitcoin spot ETF prohibited the US citizens from the Bitcoin investment exposure the both want and deserve. 

Initially in June 2022, Grayscale sued the SEC agency over the rejection of Bitcoin spot ETF applications & at the same time approval of Bitcoin futures ETF, which is less safe than spot ETFs. 

Many ETFs fund experts believe that mid-2023 may bring a better environment for the Bitcoin spot ETFs and in that situation the SEC agency will consider the approval of pending Bitcoin spot ETFs. 

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