Bitcoin crashes under $20K as SEC rejects Grayscale spot ETF application

Bitcoin (BTC) fell below $ 20,000 after the SEC rejected a grayscale application to turn Bitcoin trust into a Spot Bitcoin ETF.

According to the news, BTC was trading at a minimum of $ 18,934 in response to the news, but has since shown a slight recovery, trading at $ 19,047 at the time of the press. CryptoSlate data.

SEC rejects grayscale and bitwise applications

According to the information available, the Commission also rejected the Bitwise application and continued the culture of rejecting the Spot Bitcoin application. Both Grayscale and Bitwise submitted their applications in October 2021.

The SEC’s rejection of grayscale ETFs was despite the company’s efforts to generate public support for its application.

among them FilingThe SEC said it rejected the proposal because it did not meet the standards to protect investors and the public interest and prevent fraudulent and operational practices.

It also added concerns about the lack of surveillance sharing agreements between “a fairly large regulated market” and regulated exchanges, and the role of tethers in the Bitcoin ecosystem.

For the above reasons, this is not the first time the SEC has rejected a Spot Bitcoin ETF application.

The SEC has rejected Spot Bitcoin ETF applications from Fidelity, Valkyrie, and SkyBridge. However, the Commission is more open to the approval of Bitcoin futures ETFs and has approved two this year.

Grayscale sues SEC

Grayscale adhered to the statement that if it refused to apply for an ETF, it would sue the Commission.

I have filed a proceeding against the SEC. $ GBTC

— Sonnenshein (@Sonnenshein) June 30, 2022

The company has filed a proceeding with the SEC, calling for a review of the Commission’s decision by the US Court of Appeals at the District of Columbia Circuit.

The investment company may argue that the SEC has approved similar products in the past and that the application needs to be approved.

Grayscale CEO Michael Sonnenshein statement:

Grayscale supports and believes in the SEC’s mission to protect investors, maintain fair, orderly and efficient markets and promote capital formation. And he is deeply disappointed and strongly opposed to the SEC’s decision to continue refusing Spot Bitcoin ETFs to come to the United States. market.