Key Insights
- The Court of Appeals has finalized its ruling, directing the SEC to reevaluate its rejection of Grayscale’s spot Bitcoin ETF proposal.
- The SEC, having chosen not to appeal the court’s decision, now has the authority to either approve Grayscale’s application or reject it on different grounds.
- Grayscale is poised to swiftly proceed with converting its $17 billion Grayscale Bitcoin Trust into an ETF, emphasizing operational readiness and investor commitment.
In a decisive ruling, the D.C. Circuit Court of Appeals has brought an end to a protracted dispute between the U.S. Securities and Exchange Commission (SEC) and Grayscale, marking a pivotal moment in the pursuit of a spot Bitcoin ETF.
The closing chapter of this legal battle, which unfolded on Monday, effectively instructs the SEC to rescind its prior dismissal of Grayscale’s spot Bitcoin ETF application.
Grayscale’s $17 Billion Bitcoin ETF Proposal Back on the Table
The court’s decision aligns with its previous judgment, delivered two months ago, where it censured the SEC’s rationale, deeming it “arbitrary and capricious” in its handling of Grayscale’s quest to transform its formidable $17 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF.
The SEC’s choice to abstain from challenging this verdict casts today’s actions as a mere formality.
The spotlight now swivels back to the SEC’s domain, where the agency faces a pivotal decision. It stands at a crossroads, holding the prerogative to either greenlight Grayscale’s application or raise new objections.
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In tandem with this, the SEC has a multitude of other spot Bitcoin ETF applications from industry behemoths like BlackRock, Fidelity, and Franklin Templeton on its docket, awaiting its discerning gaze.
Commenting on this latest turn of events, Jennifer Rosenthal, the spokesperson for Grayscale, expressed optimism and readiness:
The Grayscale team looks forward to continuing to work constructively with the SEC to convert GBTC to an ETF. GBTC is operationally ready, and we intend to move as expeditiously as possible on behalf of our investors.”
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[…] Read also! Court Orders SEC to Reevaluate Rejection of Grayscale’s Bitcoin ETF Bid […]
[…] belief that the U.S. would, at long last, embrace Bitcoin ETFs. This sentiment was bolstered by a recent court ruling favoring Grayscale, a development that boosted the odds of converting its flagship GBTC product into an ETF. […]