Grayscale sued the SEC in June after its latest spot bitcoin ETF software changed into denied.
Grayscale Investments is exploring options to return a part of capital of its flagship Grayscale Bitcoin (GBTC) product if the Securities and Exchange Commission (SEC) refuses to approve its spot bitcoin alternate-traded fund (ETF), the Wall Street Journal stated, bringing up an investor letter.
One alternative is to offer tender for 20% of outstanding GBTC stocks, which might be currently trading at a forty nine% discount to net asset fee (NAV), the report stated.
Grayscale has been knocked lower back more than one times in its undertaking to transform its bitcoin accept as true with into an ETF, with the SEC bringing up a lack of regulatory oversight in a quick earlier this month.
The letter by way of Grayscale Chief Executive Michael Sonnenshein tried to ease issues amongst shareholders following a turbulent month throughout the crypto industry following the crumble of FTX, certainly one of the largest exchanges.
Grayscale is owned by the Digital Currency Group and is a sister organization of CoinDesk. Grayscale did now not right now reply to request for remark.
In June, Grayscale sued the SEC hours after the regulator rejected its ETF utility, with the company announcing that it "vehemently disagreed" with the SEC's decision.