Grayscale Investments is taking the first steps in a legal challenge against the U.S. Securities and Exchange Commission over its refusal to approve a Bitcoin exchange-traded fund (ETF). The firm filed an application to review the SEC’s disapproval of the VanEck ETF on Jan. 20, according to court filings which this week became available online.
Grayscale had originally submitted its ETF application to the Commission on Dec 29, but in mid-January, the SEC rejected it outright after deeming that cryptocurrency markets were too unstable and susceptible to manipulation. Grayscale has now submitted a petition for review under section 19(d)(1) of the Securities Act of 1934, allocating 30 days for the SEC to respond.” It’s certainly possible that if this ruling stands without the SEC coming up with some sort of compromise,” CoinDesk quoted ShapeShift CEO Erik Voorhees as saying at a recent Bitcoin conference.
Grayscale Takes The First Step
The firm has filed an application for review of the SEC’s disapproval decision with respect to the VanEck SolidX Bitcoin Trust on behalf of investors who participated in its public filing process during January 2019, according to an official press release from Grayscale recently. The filing was submitted after it was determined that there were at least three different methods by which investors could have their voices heard through written comments.
At one of two hearings held by staff members from both VanEck and SolidX; or by attending a meeting between commissioners themselves later this year where they would be given five minutes each to present their arguments before deciding whether or not they will reconsider their decisions regarding bitcoin ETFs – something that hasn’t happened since 2016 when Cboe withdrew its own application due solely because nobody showed up!