As Grayscale’s utility to transform the Grayscale Bitcoin Belief (GBTC) right into a Bitcoin (BTC) exchange-traded fund (ETF) received denied, the agency launched a authorized problem in opposition to america Securities and Exchanges Fee (SEC). Following these occasions, the neighborhood responded with varied reactions, from accusing the SEC of worth manipulation to suggesting totally different options.

ThatsMRcurmudgeon2u, a Redditor who launched himself as a securities lawyer additionally weighed in on the matter. In accordance with the Reddit person, many anticipated the lawsuit as SEC chair Gary Gensler as they made it clear that they need exchanges to register with the SEC. The Redditor additionally accused the SEC of “holding GBTC hostage.”

Lawyer Jake Chervinsky tweeted that the ETF denial is “deeply disappointing,” and it defies federal regulation and customary sense. Chervinsky identified that the SEC’s position ought to be defending buyers and argued that an ETF is a greater product for buyers.

In accordance with Twitter person Ann, because the SEC permitted an ETF that shorts Bitcoin, the SEC could also be working to “suppress the worth of Bitcoin.” The Twitter person argued that this isn’t the position of the SEC.

Alternatively, Bitcoin advocate and creator Vijay Boyapati, recommended a special route. Boyapati stated that a greater transfer could be to “wind down the fund” and return the Bitcoins to the buyers. The creator criticized Grayscale’s 2% charges and urged the agency to “do the best factor.”

A significantly better resolution could be to wind down the fund and return the underlying #bitcoin to buyers, who’re presently being milked for an outrageous 2% per yr. Do the best factor, Grayscale.

— Vijay Boyapati (@real_vijay) June 30, 2022

In Reddit, person Percyheckendorf argued that the SEC’s transfer to disclaim the ETF is unhealthy for pensioners as pension funds will probably be “caught shopping for equities” which doesn’t have as a lot potential as Bitcoin.

Elusive Bitcoin ETF: Hester Peirce criticizes lack of authorized readability for crypto

In a letter to buyers on Monday, Grayscale introduced that the SEC obtained 11,400 letters associated to the proposed Bitcoin ETF. In accordance with the agency, 99% of the letters had been in help of the ETF. Regardless of these letters of help, the ETF was nonetheless not permitted.