The US Court of Appeals rules in favor of Grayscale in Bitcoin ETF case
The US Court of Appeals for the DC Circuit has overturned the Securities and Exchange Commission’s (SEC) rejection of Grayscale’s application to convert its flagship fund, the Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin exchange-traded fund (ETF). The court ruling has ordered the SEC to review its decision and potentially approve the first spot Bitcoin ETF in the US.
- The court ruling requires the SEC to “vacate” its decision to deny the conversion of GBTC into a spot ETF.
- Grayscale filed the application to convert GBTC into a spot BTC ETF in October 2021.
- The SEC rejected the application, citing concerns about market manipulation prevention.
- Grayscale sued the SEC, which resulted in today’s court ruling.
- Bitcoin’s price surged by over $1,500 following the court ruling.
With this ruling, the SEC is now obligated to review Grayscale’s application, potentially paving the way for the approval of the first spot Bitcoin ETF in the US. This marks another significant court loss for the SEC in its legal battles with crypto companies, following its defeat in the Ripple case. The court ruling has had an immediate impact on Bitcoin’s price, with a significant surge in value.
Hot Take: Court ruling opens doors for Bitcoin ETF approval
The US Court of Appeals’ ruling in favor of Grayscale is a significant development for the cryptocurrency industry. The potential approval of the first spot Bitcoin ETF in the US could attract more institutional investors and increase mainstream adoption of Bitcoin. The court’s decision also highlights the ongoing regulatory challenges and uncertainties surrounding cryptocurrencies. As the SEC is forced to review its decision, it is crucial for market participants to closely monitor the outcome and its implications for the future of Bitcoin and other digital assets.
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