Grayscale Bitcoin Trust wins a case against the U.S. SEC, making a step forward to change their GBTC into a Bitcoin ETF.
Grayscale Bitcoin Trust (GBTC), a company that manages crypto assets, has won a big case against the U.S. Securities and Exchange Commission (SEC). They wanted to change their GBTC application into a listed Bitcoin ETF.
On August 29, court papers showed that Judge Neomi Rao supported Grayscale's request. She said the SEC didn't clearly explain why they denied Grayscale's request earlier. But this decision doesn't mean Grayscale will definitely list a Bitcoin ETF.
Grayscale's CEO, Michael Sonnenshein, tweeted that their lawyers are looking at the judge's decision.
In June 2022, the SEC said no to Grayscale's plan to make GBTC into a spot ETF. The next day, Grayscale's legal expert asked a big court to look at this decision. Sonnenshein said they were very upset with the SEC's choice.
Grayscale is a big company in the Bitcoin world. They manage more than $14 billion. This year, their GBTC shares' price dropped a lot because they had problems with the SEC and concerns about the company that owns Grayscale, called Digital Currency Group (DCG).
In October 2022, Grayscale stopped working with another company called Genesis Global. In November, Genesis Global had big problems because of issues in the cryptocurrency world. They owe a lot of money to another company.
In January 2023, people learned that DCG owes more than $3 billion. They might sell some of their investments to pay back some of this money. Genesis Global also owes a lot of money to another crypto company.
