Grayscale Brief Says SEC Unfairly Rejected Bitcoin ETF Bid (2)

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 ...