Grayscale will seek to return 20 percent of investor capital if the SEC rejects the spot Bitcoin ETF.
The SEC rejected Grayscale’s request to convert its flagship GBTC fund into an ETF at the end of June, arguing that this refusal hurt 850,000 investors who already hold shares. Recently, Grayscale submitted a legal summary to the court in its lawsuit with the SEC on the subject. Now he wants to take firm action should the SEC reject the ETF again.
Grayscale Will Seek Refunds If SEC Rejects ETF
Grayscale Investments is exploring options to return some of the capital of its flagship Grayscale Bitcoin (GBTC) product if the Securities and Exchange Commission (SEC) refuses to approve a spot bitcoin exchange-traded fund (ETF), the Wall Street Journal reports, citing an investor letter. .
One option, according to the report, is to bid for 20 percent of GBTC shares, which are currently trading at a 49 percent discount to net asset value (NAV).
Grayscale was turned down multiple times in its mission to convert its Bitcoin fund into an ETF, and the SEC cited a lack of regulatory oversight in a summary earlier this month. In June, Grayscale filed a lawsuit with the SEC hours after the regulator rejected its ETF application, and the company said it strongly opposed the SEC’s decision.