The U.S. Court of Appeals Orders SEC to Review Grayscale’s Bitcoin ETF Application
The U.S. Court of Appeals has issued an order for the Securities and Exchange Commission (SEC) to review Grayscale’s application for a spot Bitcoin ETF. The court’s decision comes after Grayscale sued the SEC last year for refusing to allow its Grayscale Bitcoin Trust (GBTC) to convert into a spot Bitcoin ETF.
The court ruled in favor of Grayscale in August, stating that the SEC’s judgment was “arbitrary and capricious.” Despite having the option to appeal the ruling, the SEC remained silent, leading to the court order for a reassessment of the application.
While the SEC can still deny the application, it would need to provide new reasons unrelated to its previous justification. Other Bitcoin ETF applicants have already presented counter-arguments against the SEC’s prior reasoning.
SEC commissioner Hester Peirce expressed her confusion over the agency’s delay in approving a spot Bitcoin ETF.
The Grayscale Bitcoin Trust Continues to Gain Confidence
The Grayscale Bitcoin Trust (GBTC) is currently the world’s largest Bitcoin fund. However, its shares cannot be directly redeemed for BTC until a conversion is approved. Despite this limitation, GBTC shares have experienced a 33% increase in value over the past month as confidence grows regarding the approval of Grayscale’s application.
Hot Take: A Step Forward for Bitcoin ETFs
The U.S. Court of Appeals’ order for the SEC to review Grayscale’s spot Bitcoin ETF application marks a significant development in the journey towards establishing regulated Bitcoin exchange-traded funds. With other applicants ready to challenge any renewed attempts by the SEC to block such applications, it remains to be seen how the agency will proceed. The growing confidence in the Grayscale Bitcoin Trust reflects the increasing interest and demand for regulated Bitcoin investment products. As the SEC faces pressure to provide clear guidelines for the crypto industry, this order brings us one step closer to the possibility of a spot Bitcoin ETF in the United States.
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