Grayscale Investments launched a legal challenge

It against the Securities and Exchange Commission (SEC)

Previously, they are denied to convert their application

From Grayscale Bitcoin Trust (GBTC)

Into a spot-based Bitcoin exchange-traded fund (ETF).

Certainly, Grayscale Investments has much enough asset

They have $12.92 billion of assets under management

And its is in GBTC

Which waiting on a decision from the SEC

To convert its flagship Bitcoin trust into a spot-based ETF

Since filing its application to the regulator on October 19, 2021.

According to a filing from the securities regulator on June 29,

The application was disapproved to protect investors and the public interest

Because the proposal failed to demonstrate how it is,

Designed to prevent fraudulent and manipulative acts and practices.

Furthermore, Senior Legal Strategist, former U.S. Solicitor General Donald B. Verrilli Jr.

Had filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit.

It was happened on June, 29

Moreover, Verrelli stated that the latest decision shows that the SEC is acting

Arbitrarily and capriciously by failing to apply consistent treatment

To similar investment vehicles

And it will pursuing a legal challenge

Based on the SEC’s alleged violation of the Administrative Procedure Act (APA)

And Securities Exchange Act (SEA).

In addition, the decision came out a full week before the July 6 deadline

And came on the same day

Likewise rejection of Bitwise’s Bitcoin exchange-traded product (ETP).

Then, Michael Sonnenshein, Grayscale’s CEO describe his regret,

He said that they “deeply disappointed” and “vehemently disagree”

Because of the SEC’s decision to deny their application.