The U.S. Court of Appeals for the D.C. Circuit
The U.S. Court of Appeals for the D.C. Circuit has issued a mandate compelling the Securities and Exchange Commission (SEC) to revisit Grayscale Investments’ application for a spot Bitcoin ETF. This decision stems from the court’s previous ruling, emphasizing the similarities between Grayscale’s proposition and the already sanctioned Bitcoin futures ETFs. Consequently, the court noted that Grayscale’s product merits approval, given its similar capacity for identifying market misconduct.
Court Backs Grayscale’s Bitcoin ETF Quest
The mandate reinforces Grayscale’s argument that its proposed Bitcoin ETF mirrors the characteristics of approved Bitcoin futures ETFs; hence, it should not face undue hurdles. Significantly, the firm resubmitted its application via an expedited S-3 filing, diverging from the standard S-1 process for new share offerings. Additionally, Grayscale plans to list its shares on NYSE Arca, pending the green light on its current submissions, including a separate filing necessary for NYSE Arca.
Major Firms Seek SEC’s ETF Approval
Grayscale isn’t alone in its pursuit. Other industry giants, like BlackRock and Fidelity, have thrown their hats into the ring, seeking the SEC’s blessing for their spot in Bitcoin ETFs. SEC Chair Gary Gensler acknowledged the agency’s receipt of multiple filings, without giving specific comments on Grayscale’s case. Moreover, he detailed the rigorous review process proposals undergo, akin to public offering vetting, underscoring the agency’s commitment to thorough evaluation.
Hot Take: The Road to Bitcoin ETF Approval
The recent court mandate pushing the SEC to revisit Grayscale Investments’ application for a spot Bitcoin ETF is a significant development in the quest for Bitcoin ETF approval. The court’s ruling highlights the similarities between Grayscale’s proposal and already approved Bitcoin futures ETFs, suggesting that Grayscale’s product deserves approval. However, despite this push from the court, the SEC retains the authority to find new grounds for rejection. With major firms like BlackRock and Fidelity also seeking SEC approval for their Bitcoin ETFs, it remains to be seen how the regulatory body will navigate the complex landscape of applications while balancing market innovation and consumer protection.
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