Grayscale Investments, the world’s largest crypto asset manager, is facing backlash from the crypto community for not revealing its proof of reserves. Meanwhile, industry experts are blaming it on the regulatory landscape for the loss of trust around transparency in Grayscale’s Bitcoin products. Earlier in June this year, the U.S. Securities and Exchange Commission (SEC) rejected Grayscale’s spot Bitcoin ETF application. Following the rejection, the company challenged the SEC’s decision in the form of a lawsuit.
Grayscale’s main contention was that the SEC was discriminatory in its assessment of the spot Bitcoin market. It argued that the regulator allows futures-based Bitcoin ETFs, which are exposed to similar legal concerns, while rejecting spot Bitcoin ETFs. In a latest, voices are being heard about the lack of clarity around the SEC’s position as Grayscale’s Bitcoin products comprise a significant form of the total BTC market share.
(By Anvesh Reddy)