The digital asset lender has five days from the date of the order to comply by handing over the Securities and Exchange Commission’s requested documents, creating a deadline of October 18.
The digital asset market has its optimism renewed following BlackRock's application to start a spot BTC ETF, but with ETFs' grim history with the SEC, this could prove to be a long shot for the firm.
GBTC could soon be scrutinized by the U.S. SEC as Rep. Brad Sherman urges Commission chair Gary Gensler to look into the firm's actions and safeguard funds trapped under the investment vehicle.
Recently, users saw a precipitous drop in the value of multiple alt-coins, including many associated with companies in which DCG had invested.
Fir Tree believes Grayscale Investments is hiding something tied to the troubling reports about liquidity issues with DCG and its corporate affiliates, which led them to file a complaint.
Grayscale argues that the regulator’s rejection of its bid to convert its GBTC fund to a spot BTC ETF violates the Administration Procedure Act and the Securities Exchange Act of 1934.
The U.S. regulator is requesting for public feedback on the ETF application, which seeks to convert shares of the Grayscale Bitcoin Trust (GBTC) into a spot ETF, the first of its kind in the U.S. market.
Grayscale investors who purchased shares in its BTC Trust in late 2020 and early 2021 will be able to sell their shares in the coming weeks, and analysts expect many of those investors will opt to sell.