Grayscale CEO Expects Decision on SEC Lawsuit by Fall 2023

• Grayscale Investments CEO Michael Sonnenshein appeared in an interview on What Bitcoin Did and discussed the lawsuit against SEC that started in June 2022.
• The company had started the Grayscale Bitcoin Trust (GBTC) with the objective of converting it into a spot Bitcoin exchange traded fund (ETF) to avoid a 45% discount to its net asset value.
• The CEO expects a decision in the lawsuit by fall of 2023 and oral arguments for the case will begin on 7 March.

Grayscale Investments Lawsuit Against SEC

Objective to Convert GBTC into Spot Bitcoin ETF

Michael Sonnenshein, the CEO of Grayscale Investments, recently spoke about his company’s lawsuit against the U.S. Securities and Exchange Commission (SEC). He explained that when Grayscale started with the Grayscale Bitcoin Trust (GBTC), its objective from day one was to convert it into a spot Bitcoin exchange traded fund (ETF). The fund’s legal structure was created in a way that would ensure smooth transition into an ETF when possible, as this would avoid a 45% discount to its net asset value due to press time price.

SEC Rejected Application for Conversion

Unfortunately, mid 2022 saw the securities regulator reject Grayscale’s application to convert GBTC to a spot Bitcoin ETF, leading them to file a last-ditch attempt lawsuit out of interest for their investors. According to Sonnenshein, they are suing because they believe that when federal agencies like the SEC treat similar issues differently and arbitrarily, it violates U.S administrative procedures act – citing approval of BTC futures ETF while denying spot BTC ETF as an example.

Oral Arguments Coming Soon

The hour-long interview further revealed that Sonnenshein expects a decision in the lawsuit by fall of 2023, with oral arguments for it beginning on 7 March. Additionally, he clarified that there is no operational reliance between Genesis – which falls under same parent firm DCG – and Grayscale despite Genesis undergoing chapter 11 bankruptcy proceedings at press time.

Relationship With Genesis Clarified

The importance of achieving success in this endeavor was also highlighted; owing to over 1 million investor accounts from all 50 states and around the world who own GBTC counting on them „to do right thing“. Therefore if they lose their appeal, taking it up with United States Supreme Court is not off table either according to Sonnenshein’s statements during interview on What Bitcoin Did podcast show..

Final Decision Expected by Fall 2023

In conclusion, Michael Sonnenshein expects final resolution in form of court decision by fall 2023 after oral arguments take place on 7th March this year; while clarifying relationship between his firm & Genesis which falls under same parent company DCG plus lack any operational reliance between two firms despite latter going through chapter 11 bankruptcy proceedings at present time