Grayscale Investments LLC, the largest crypto asset manager, said the US Securities and Exchange Commission acted arbitrarily earlier this year in rebuffing a bid to convert its $12 billion spot Bitcoin trust into an exchange-traded fund.
The rejection over the risk of fraud and manipulation in the spot Bitcoin market is “capricious” and “discriminatory” because the SEC has allowed futures-based Bitcoin ETFs and they are exposed to similar concerns, Grayscale said Tuesday in the opening brief of its lawsuit against the regulator.
In a statement, the firm said the brief argues that “the test the SEC has applied ...
