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The US Court of Appeals for the DC Circuit overturned the country’s securities regulator’s rejection to review Grayscale’s application to turn its flagship fund into a spot Bitcoin ETF.
Recall that the asset manager sued the Securities and Exchange Commission earlier this year.
- The Tuesday ruling ordered the SEC to “vacate” its decision to refute the conversion of the Grayscale Bitcoin Trust into a spot exchange-traded fund that tracks the performance of BTC.
- Grayscale’s CEO took it to X to highlight the court’s ruling.
🚨 JUST IN 🚨
The D.C. Circuit ruled in favor of @Grayscale in our lawsuit challenging the SEC’s decision to deny $GBTC‘s conversion to an ETF!
Thank you to everyone who has been on this journey with us, especially our investors. We are grateful for your support and…
— Sonnenshein (@Sonnenshein) August 29, 2023
- This means that the agency must now review the rejection, which could lead to the approval of the first spot Bitcoin ETF in the States.
- Grayscale filed to turn GBTC into a spot BTC ETF back in October 2021, but the Commission rejected its application shortly after, claiming that the company has failed to ensure how it will prevent market manipulation.
- Grayscale responded quickly by suing the regulator, which many believed had a great chance of succeeding.
- Today’s ruling had a massive impact on BTC’s price as the asset exploded by over $1,500 in minutes to register a new multi-week high at over $27,500.
- This is the SEC’s second major court loss against a crypto company in the past few months after the defeat suffered in its legal battle versus Ripple.
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