© Reuters
Investing.com – Last year, the U.S. Securities and Exchange Commission (SEC) rejected Grayscale’s request to turn the Grayscale Trust (GBTC) into an ETF. As a result, Grayscale filed a lawsuit in June 2022.
The District of Columbia Court of Appeals has now set a hearing for March 7, during which both sides can to present their arguments. Negotiations were originally scheduled to begin in the second quarter of 2023, but with the filing for Chapter 11 insolvency protection filed by sister company Genesis, the court decided to adopt a new procedure.
The SEC rejected the application to convert GBTC into an ETF on the grounds that there is a risk of market manipulation and therefore investor protection is not guaranteed.
In the context of the bankruptcy of Genesis, one can imagine that Grayscale could also be forced to put an end to its activities. Valkyrie Investments and Osprey Funds have already expressed interest in taking over GBTC.
Grayscale currently manages assets worth $14.5 billion.
By Marco Oehrl