Grayscale Secures Definitive Court Win Against SEC in Spot Bitcoin ETF Lawsuit

Police & Regulations
Oct 26, 2023 at 12:53 pm

The D.C. Circuit Court of Appeals has brought closure to the dispute between Grayscale and the U.S. Securities and Exchange Commission (SEC), delivering a final ruling that effectively instructs the agency to reconsider its rejection of the asset manager's proposal for a spot bitcoin ETF.

This official conclusion of the case, which transpired on Monday, essentially solidifies the court's original judgment from two months ago. At that time, the court deemed the SEC's decision to decline Grayscale's request to convert its approximately $17 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF as "arbitrary and capricious."

Remarkably, the SEC chose not to contest this ruling, making the recent action more of a formality.

With this chapter closed, the ball now resides within the SEC's court. The agency has the option to either grant approval to Grayscale's application or potentially reject it based on different grounds. Moreover, the SEC is in the process of deliberating on several other applications for spot bitcoin ETFs, including those submitted by major asset management firms like BlackRock, Fidelity, and Franklin Templeton.

Jennifer Rosenthal, a spokeswoman for Grayscale, expressed the team's eagerness to collaborate with the SEC in the endeavor to convert GBTC into an ETF. She affirmed that GBTC is fully prepared for operational transformation, and the company intends to expedite the process on behalf of its investors.

Read more: ARK's GBTC Maneuver Amid ETF Speculation

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