The SEC Ordered to Re-Review Grayscale’s Bitcoin ETF Bid
Last week, the court ruled that the SEC must re-review Grayscale’s bid for a spot bitcoin ETF. This comes after Grayscale sued the agency last year following the rejection of its plan to convert its GBTC fund. The court specifically addressed the SEC’s differential treatment of spot bitcoin ETFs and futures contracts-based funds, which the regulator has approved.
According to lawyers for Grayscale, the SEC should find no grounds for treating its trust differently from bitcoin futures ETFs. The lawyers argue that if there were any valid reasons for differentiation, they would have already been presented in the fifteen Commission orders that rejected spot bitcoin filings after the launch of bitcoin futures ETFs.
A Long Road Ahead
The SEC has yet to approve a spot bitcoin ETF. However, the judges’ opinion last week may be a positive development for firms that have recently applied for spot bitcoin ETFs, including big names like BlackRock and Fidelity.
Experts suggest that the SEC could request an en banc hearing within the next 45 days. After this period, the court will issue a final mandate outlining the next steps. The agency also has the option to seek review of the judges’ opinion in the Supreme Court and may choose different reasons to deny the ETF proposals.
Hot Take: Potential Breakthrough for Bitcoin ETFs
The court’s order for the SEC to re-review Grayscale’s bitcoin ETF bid signals a potential breakthrough for the industry. If the SEC approves a spot bitcoin ETF, it could open the floodgates for other firms seeking to launch similar investment products. This decision also puts pressure on the SEC to provide fair treatment to all bitcoin-based funds, regardless of whether they are spot or futures contracts-based. The outcome of this re-review could have significant implications for the future of cryptocurrency investment opportunities.
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