Claim $500Just-In: Grayscale Lawsuit Against SEC Preponed After Genesis Bankruptcy
The District of Columbia Court of Appeals has preponed a date for Grayscale’s lawsuit against the Securities and Exchange Commission (SEC). The oral arguments on the SEC denying conversion of the Grayscale Bitcoin Trust to a Bitcoin ETF will now be heard on March 7 at 9:30 AM ET. The oral arguments were earlier expected to begin after April this year.
Court Prepones Grayscale Lawsuit Against the SEC
According to a court order on January 23, the District of Columbia Court of Appeals has set March 7 as the date to hear oral arguments in Grayscale’s lawsuit against the U.S. Securities and Exchange Commission (SEC).
The oral arguments were expected to begin in the second quarter of 2023. However, the court has preponed the lawsuit and both sides will present their case to the court on March 7 at 9:30 AM ET, reported CNBC on January 24.
Grayscale filed the lawsuit against the SEC in June 2022 after the application to convert the Grayscale Bitcoin Trust (GBTC) to a Bitcoin ETF was rejected. The SEC cited concerns about market manipulation and investor protections as reasons behind rejecting the application.
The move may likely have come after Grayscale’s sister firm crypto lender Genesis Capital filed for Chapter 11 bankruptcy last week. Genesis stopped withdrawals, redemptions, and new loan originations due to the FTX bankruptcy.
Also Read: Will BTC Continue Its Downfall For The Coming Week
Investors’ Concerns Mount After Genesis Filing
Meanwhile, investors’ concerns have grown regarding GBTC widening discount premium rates after Genesis’ bankruptcy. Currently, the GBTC trades at a negative premium rate of 41.5% and total assets under management of $14.5 billion.
Valkyrie Investments and Osprey Funds have proposed taking over the sponsorship and management of the Grayscale Bitcoin Trust (GBTC). The firms assert it will give shareholders a better option to lower management fees and a redemption program.
Also Read: Shiba Inu Developer Hints At Finalizing Shibarium Beta Launch
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