Stephanie Douse 
Grayscale filed a lawsuit against the US Securities and Exchanges Commission (SEC) after its request to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF) was rejected.
Following these occurrences, the public reacted in a variety of ways, from blaming the SEC for manipulating prices to offering numerous solutions.
Another Redditor who identified himself as a securities lawyer, ThatsMRcurmudgeon2u, commented on the subject. Many people anticipated the lawsuit, according to the Reddit user, because SEC head Gary Gensler made it apparent that they want exchanges to register with the SEC. The SEC was allegedly “keeping GBTC hostage,” according to the Redditor.
In a tweet, attorney Jake Chervinsky stated that the ETF refusal is “extremely upsetting” and that it goes against both federal law and logic. Chervinsky claimed that an ETF is a superior product for investors and emphasized that the SEC’s responsibility should be to safeguard investors.
Since the SEC approved an ETF that shorts Bitcoin, Ann of Twitter speculates that the agency may be attempting to “lower the price of Bitcoin.” This, according to the Twitter user, is not the SEC’s responsibility.
Author and Bitcoin proponent Vijay Boyapati, on the other hand, recommended an alternative course of action. Boyapati suggested that “winding down the fund” and returning the Bitcoins to the investors would be a wiser course of action. Grayscale’s 2 percent fees were blasted by the author, who also urged the business to “do the right thing.”
The SEC’s decision to reject the ETF, according to Reddit user Percyheckendorf, is detrimental for retirees since pension funds will be “stuck buying equities,” which have less potential than Bitcoin.
Grayscale reported that the SEC received 11,400 letters regarding the proposed Bitcoin ETF in a letter to investors on Monday. Ninety-nine percent of the letters, according to the company, supported the ETF. The ETF was still not approved despite these letters of support.