Grayscale and the US Securities and Exchange Commission will soon hear their oral arguments in court regarding the conversion of the Grayscale Bitcoin Trust into an exchange-traded fund, according to a court filing dated Jan. 23.

The SEC made the decision to reject a proposal by Grayscale that would allow the company to convert its Bitcoin trust into an ETF in June 2022.

Those oral arguments are now scheduled to be heard at 9:30 a.m. EST on March 7 in the District of Columbia Court of Appeals. Grayscale noted that the arguments were originally expected to be heard no earlier than the second quarter of this year.

The composition of the argumentative panel will be announced thirty days before that date. Final reports are due February 3, just over a month before the oral argument date.

Grayscale has been attempting to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund since October 2021. The firm decided to move forward with its proposal at the time because the SEC had just approved the first Bitcoin futures ETF.

Although other Bitcoin futures ETFs quickly gained approval, Grayscale’s GBTC proposal described a Bitcoin spot ETF. As such, it faced increased regulatory scrutiny. The SEC ultimately rejected Grayscale’s proposal in June 2022, arguing that Grayscale provided no assurances about market manipulation and investor protection.

Since that rejection, Grayscale has aggressively pushed for a reconsideration of its ETF proposal. The company immediately filed a lawsuit and appeal for review. The SEC and Grayscale have each filed several briefs in court over the past six months.

Grayscale has also engaged with the public on this. Chief executive Michael Sonnenshein suggested in December that Grayscale could buy back a portion of GBTC if its ETF conversion fails. Most recently, Grayscale attempted to reassure the public that the current cryptocurrency liquidity crisis will not affect their efforts.

Grayscale BTC currently has 643,572 BTC ($14.8 billion) under management. However, its value has fallen significantly over the course of the past year and it is now trading at a discount. Those losses were somewhat offset by gains of 10% last week.





This post Greyscale, SEC to deliver oral arguments on GBTC ETF conversion in March

was published first on https://cryptoslate.com/grayscale-sec-will-voice-oral-arguments-over-gbtc-etf-conversion-in-march/

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