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In June 2022, Grayscale sued the Securities and Exchange Commission (SEC) after the regulator once again refused to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF. The case is expected to continue into the second half of 2023, but Grayscale has come forward to reveal its plans if the court sides with the SEC.

Still not backed down, planning to appeal

Oral arguments in Grayscale Investments’ lawsuit against the SEC are scheduled for March 7, 2023. The date came earlier than expected, but was expedited due to Genesis’ filing for bankruptcy and possible liquidity issues for the company. parent Digital Currency Group, the umbrella under which Grayscale operates.

Nevertheless, Grayscale seems ready for it as CEO Michael Sonnenshein said that the company will not back down if the SEC emerges victorious. Sonnenshein said Grayscale would appeal if the court accepted the SEC’s rejection of its spot bitcoin ETF.

Since the case is currently being heard by the Court of Appeals for the District of Columbia, an appeal for judgment would move the case to the jurisdiction of the United States Supreme Court or a review by a panel. in bench. A panel en banc review is a situation where all the judges of the court of appeal sit to hear a case, and is reserved only for extremely large or complex cases.

Grayscale is determined to turn GBTC into a spot bitcoin ETF, as it believes this is the only way to reconcile the large shipping discount the fund trades on, as well as provide the most value to its investors.

Bitcoin Trust Grayscale Price Chart from

GBTC share price struggling to hold $12 | Source: Grayscale Bitcoin Trust on

Grayscale Bitcoin trust is unaffected by Genesis

When Genesis filed for bankruptcy last week, a question swirled around the crypto community as if it had an effect on the Grayscale Bitcoin Trust. GBTC is currently the largest bitcoin trust in the world with over $14.5 billion in assets under management, representing over 600,000 BTC. Naturally, if such a fund were hit and GBTC were to be liquidated, it would be disastrous for the crypto market.

However, Sonnenshein assured investors that GBTC is not affected by the events of Genesis or DCG. “Grayscale is a stand-alone entity with its own management, governance, budgets, policies and procedures, and the assets that underpin the Grayscale family of products are owned by its respective shareholders,” the CEO said.

Grayscale Bitcoin Trust

Grayscale discount above 41% | Source: YCharts

As for GBTC, it continues to trade at a steep discount. It has since recovered from its 48.9% discount to net asset value recorded in December, but it still has a long way to go. At present, the GBTC rebate is still hovering above 41%, according to data from Y-Charts.

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