Some developments on Grayscale/SEC lawsuit of GBTC Bitcoin ETF.

As of my knowledge cutoff date of September 2021, the Grayscale/SEC lawsuit regarding the GBTC Bitcoin ETF was still ongoing. However, I do not have information on any recent developments that may have occurred since then.

To provide some background, in January 2021, Grayscale Investments filed an application with the U.S. Securities and Exchange Commission (SEC) to register its Bitcoin Investment Trust as an exchange-traded fund (ETF). The trust, known as GBTC, holds Bitcoin and allows investors to gain exposure to the cryptocurrency without owning it directly.

In response, the SEC delayed making a decision on the application and requested additional information from Grayscale. Then, in April 2021, it was reported that the SEC had begun a formal review of the application, which was seen as a positive development for the ETF's chances of approval.

However, in June 2021, it was revealed that the SEC had initiated a probe into Grayscale's valuation practices for its digital currency products, including GBTC. This led to a drop in the price of GBTC shares, which trade on the OTCQX market.

In August 2021, it was reported that Grayscale had responded to the SEC's information requests and was continuing to engage with the regulator on the matter. It remains to be seen what the outcome of the SEC's review and probe will be, and whether or not GBTC will eventually be approved as an ETF.