Crypto fund Grayscale launches lawsuit after SEC rejects ETF plan
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SEC rejected Grayscale’s latest application to become an exchange traded fund because the $40bn Bitcoin Trust failed to meet consumer protection requirements. Failure to secure regulatory consent is a blow to the crypto industry, which had been hoping its approval would ease the financial crisis sweeping the sector. Following the rejection, the price of bitcoin dropped 3.4 per cent to as low as $19,400, its lowest point since mid-June. The rejection came as the SEC debates whether to allow US ETFs to hold bitcoin, rather than derivatives linked to the digital token, for the first time. The company withdrew another attempt to convert to an ETF in 2017 and filed a petition for review with the appeals court in the District of Columbia to challenge the SEC's rejection. Source