Grayscale Asserts SEC Lacks Basis to Deny Bitcoin ETF Conversion

Grayscale Investments has argued that the U.S. Securities and Exchange Commission (SEC) has "no grounds" to reject the conversion of its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). The SEC was ordered by the D.C. Circuit Court of Appeals to review its previous rejection of the conversion, with Grayscale stating that its proposed product is not materially different from bitcoin futures exchange-traded products (ETPs) already trading in the U.S. Grayscale's legal team wrote a letter to the SEC, urging them to treat the Trust similarly to ETPs that invest in bitcoin futures contracts. However, the recent court decision only requires the SEC to review the rejection, not to approve it.