Grayscale Investments Wins Legal Battle Against SEC, but Bitcoin ETF Approval Still Pending
Grayscale Investments has achieved another victory in its legal battle against the SEC, with the DC Circuit Court ruling that the SEC acted arbitrarily in rejecting Grayscale’s request to convert its Bitcoin Trust product into an ETF. However, the approval of a Bitcoin ETF is still pending, and experts believe that the SEC may find another reason to deny it in the future.
Key Points:
- Grayscale’s victory is significant as it is rare for a federal circuit court to find an agency in violation of the APA.
- Jake Chervinsky predicts that the SEC will have to review Grayscale’s application again using the new guiding framework provided by the DC Circuit Appeal ruling.
- Although there is growing optimism, the approval of a spot Bitcoin ETF may not come this year, as the SEC has hinted at delaying the review and issuance of feedback until next year.
- The SEC may choose to wait out the timeline to avoid sending the wrong message or appearing politically motivated.
- Despite the current ruling, the timeline for a Bitcoin ETF launch may still differ significantly.
Hot Take:
Grayscale’s victory against the SEC is a significant step towards the approval of a Bitcoin ETF. However, the road to approval is still uncertain, and the SEC may continue to find reasons to deny it. The crypto community eagerly awaits further developments and hopes for a favorable outcome.
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