Grayscale sues SEC after rejection of bid to turn the largest bitcoin fund into an ETF

  • The SEC on Wednesday rejected Grayscale’s application to turn its GBTC vehicle into an ETF.
  • Grayscale filed a petition challenging the decision with the U.S. Court of Appeals for District of Columbia Circuit.
  • Crypto bulls had pinned their hopes on the SEC approving the first U.S. spot bitcoin ETF.

Grayscale, which manages the world’s largest bitcoin fund, said it would sue the U.S. Securities and Exchange Commission after regulators turned down its bid to convert the investment vehicle into an exchange-traded fund.

The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin exchange-traded fund, citing a failure by the investment manager to answer questions about concerns around market manipulation.

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