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In June 2022, Grayscale sued the Securities and Exchange Commission (SEC) after the regulator had as soon as extra declined to transform the Grayscale Bitcoin Trust (GBTC) to a spot ETF. The case is anticipated to pull on into the second half of 2023 however Grayscale has come ahead to disclose its plans if the courtroom have been to facet with the SEC.

Still Not Backing Down, Plans To Appeal

Oral arguments within the Grayscale Investments lawsuit towards the SEC have been scheduled for March 7, 2023. The date got here sooner than anticipated however has been accelerated as a result of Genesis submitting for chapter and attainable liquidity points at guardian firm Digital Currency Group, the umbrella below which Grayscale operates.

Nevertheless, Grayscale appears prepared for this as CEO Michael Sonnenshein says that the corporate is not going to again down if SEC emerged victorious. Sonnenshein mentioned that Grayscale would file an attraction if the courtroom have been to facet with the SEC’s rejection of its spot bitcoin ETF.

Since the case is presently being dealt with by the District of Columbia Court of Appeals, an attraction to a judgment would transfer the case as much as the U.S. Supreme Court’s purview or an en banc panel overview. An en banc panel overview is a state of affairs the place all the appellate courtroom judges sit to listen to a case, and is barely reserved for terribly essential or complicated circumstances.

Grayscale is decided to show the GBTC right into a spot bitcoin ETF because it believes that is the one option to reconcile the huge low cost to nav the fund is buying and selling at, in addition to present essentially the most worth for its traders.

GBTC share worth struggling to carry $12 | Source: Grayscale Bitcoin Trust on TradingView.com

Grayscale Bitcoin Trust Not Affected By Genesis

When Genesis filed for chapter final week, a query made the rounds throughout the crypto neighborhood as if it had any impact on the Grayscale Bitcoin Trust. The GBTC is presently the most important bitcoin belief on the earth with over $14.5 billion in belongings below administration, accounting for greater than 600,000 BTC. Naturally, if such a fund have been affected and the GBTC needed to be liquidated, it will be disastrous for the crypto market. 

However, Sonnenshein has assured traders that the GBTC just isn’t affected by the occasions at Genesis or DCG. “Grayscale is a standalone entity with its own leadership, governance, budgets, policies and procedures, and the assets underpinning the Grayscale family of products belong to its respective shareholders,” the CEO mentioned.

Grayscale low cost above 41% | Source: YCharts

As for the GBTC, it continues to commerce at a steep low cost. It has since recovered from its 48.9% low cost to nav recorded in December, however it nonetheless has an extended option to go. Right now, the GBTC low cost remains to be hovering above 41%, in line with knowledge from YCharts.