Bitcoin price falls below $20,000 after SEC rejects Grayscale’s ETF application

After Grayscale rejected the application to turn its trust into a spotBTCET, the price of the digital currency fell below $20,000.

According to the data, the BTC was trading at $18,934 at its lowest point after the news but has since marked a small recovery and is trading at $19,047 at press time.

The commission rejected the Bitwise application, continuing its tradition of rejecting spot Bitcoin applications, per available information. Both Grayscale and Bitwise filed their application in October 2021.

The SEC rejected Grayscale's ETF despite the firm's efforts to generate public support for its application.

The SEC rejected the proposal in its filing because it did not meet the standards to protect investors and public interest and prevent fraudulent and manipulative practices.

It also raised concerns about the absence of a surveillance sharing agreement between a regulated market and a regulated exchange, and the role of Tether in the Bitcoins ecosystem.

This is not the first time that the SEC has rejected a spotBitcoin ETF application because of the above reasons.

The SEC has rejected spotBitcoin ETF applications from SkyBridge, Valkyrie, and Fidelity. The commission has approved two of the ETFs forBitcoin, but they have been open to it this year.

Grayscale has made a statement that it will sue the commission if it rejects its ETF application.

The firm has filed a lawsuit against the SEC and asked for a review of the commission's decision by the US Court of Appeals for the District of Columbia Circuit.

Since the SEC has approved similar products in the past, the investment firm would argue that it must approve the application.