Grayscale Investments, the world’s largest cryptocurrency asset manager, isn’t ruling out a legal battle with the SEC if a spot Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF) stands rejected.
What Happened: In an interview with Bloomberg on Monday, Grayscale CEO Michael Sonnenshein said that the firm had been putting all of its resources behind converting the Grayscale Bitcoin Trust (OTC: GBTC) into an ETF.
“It’s really important that investors know that we have and will continue to advocate for them,” said Sonnenshein.
Last month, the SEC delayed a decision on whether it would approve Grayscale’s spot Bitcoin ETF application and requested comments from the public on whether to approve such a product.
“GBTC today is owned by investors in all 50 states, and there’s actually now over 800,000 accounts in the US all waiting patiently to have it converted into an ETF,” said the Grayscale CEO.
When asked whether Grayscale would consider an Administrative Procedure Act lawsuit if their application to convert GBTC into a spot Bitcoin ETF stands rejected, Sonnenshein said that “all options are on the table.”
GBTC has traded at a 25-30% discount to net asset value (NAV) in March, but Sonnenshein believes investors who buy into the Bitcoin trust now will be considerably better off if and when GBTC converts into an ETF.
“They [investors] can take a dollar and put it into GBTC and buy Bitcoin exposure at about 75 cents on the dollar. And so investors understand that, over time, if and when GBTC converts, that will converge and that discount will actually close up to the NAV,” he said.
See Also: Why Grayscale Bitcoin Trust Is Gaining the Upper Hand Over Tesla: Bloomberg's Crypto Report
Price Action: According to data from Benzinga Pro, the leading cryptocurrency Bitcoin (CRYPTO: BTC) was trading at $47,600, up 1.67% in the last 24 hours.
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