Investment giant Grayscale has withdrawn its Filecoin (FIL) ETF application and stated that it does not believe the FIL is a security.
Grayscale, the world’s largest digital asset management company, has introduced the most talked about securities issue of recent days. Grayscale has withdrawn its FIL ETF application to the SEC. However, the investment giant still does not consider FIL to be a security.
Grayscale Addresses Securities
Investment management giant Grayscale has shared a blog post that it has withdrawn its Filecoin (FIL) ETF application. Grayscale explained what happened during the ETF process.
Grayscale stated that it is in contact with the SEC to provide transparency to its investors and address risk disclosures. Touching on the Filecoin issue, Grayscale said that it applied to the SEC on April 14, 2023 for the FIL ETF. According to Grayscale, the SEC requested that this application be withdrawn on May 16, 2023.
The SEC told Grayscale that the FIL is a security and therefore the ETF application should be withdrawn. However, Grayscale, in a letter to the SEC, stated that the FIL is not a security as a result of the Howey tests.
The litigation processes that started later and the SEC’s reflection of the FIL as a security through the court were also reflected on the Grayscale front. The SEC reiterated that, relying on the courts, Grayscale should withdraw its FIL ETF.
As a result, Grayscale withdrew its application for the FIL ETF, and still believes that the FIL is not a security. The actors and regulators of the crypto market continue to diverge under different topics.
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