The U.S. Court of Appeals has issued its highly anticipated order for the Securities and Exchange (SEC) to review Grayscale’s spot Bitcoin ETF application. The judgment relates to Grayscale’s lawsuit against the SEC from last year, in which the firm sued the agency for refusing to allow its Grayscale Bitcoin Trust (GBTC) to convert into a spot Bitcoin ETF. The firm argued that the SEC’s judgment was “arbitrary and capricious” given the firm’s acceptance of similarly structured Bitcoin futures ETF products. The SEC had 45 days to appeal the case but remained radio silent as its deadline passed earlier this month. This made a court order to reassess Grayscale’s application inevitable, which has now arrived. Though the agency representatives refuse to directly comment on the case, SEC commissioner Hester Peirce said on Monday that she is “mystified” why her agency hasn’t approved a spot Bitcoin ETF by now. The Grayscale Bitcoin Trust (GBTC) is the world’s largest Bitcoin fund, but its shares will not be directly redeemable for BTC until a conversion is approved. Amid growing confidence that the company will succeed, GBTC shares have soared 33% over the past month.
This is exciting news for the cryptocurrency world as the U.S. Court of Appeals has issued its order for the SEC to review Grayscale’s spot Bitcoin ETF application. This means that the agency will have to reassess Grayscale’s application and potentially approve it, allowing for GBTC shares to be directly redeemable for BTC. Though the SEC still has the power to deny the application, other Bitcoin ETF applicants have already laid out a slew of counter-arguments should the agency pursue a similar pathway again.
You can read more about this topic here: Decrypt: SEC Ordered to Review Grayscale’s Bitcoin ETF Application