Court Orders SEC to Evaluate Grayscale’s Bitcoin ETF Proposal
The U.S. Court of Appeals for the D.C. Circuit has upheld its previous decision, instructing the Securities and Exchange Commission (SEC) to evaluate Grayscale Investments' proposal to transform its leading GBTC fund into a Bitcoin ETF.
This development follows the recent announcement by the SEC that it has no plans to challenge the court’s decision.
The court has provided clear guidance to the SEC on how to proceed with Grayscale’s Bitcoin Spot ETF application.
The court’s ruling in August primarily revolved around the SEC’s approach to spot Bitcoin ETFs compared to futures ETFs. It argued that Grayscale’s proposed Bitcoin ETF exhibited similar characteristics to already approved Bitcoin futures ETFs and should be subject to the same scrutiny when it comes to identifying fraudulent or manipulative activities in the Bitcoin and Bitcoin futures market.
Grayscale’s plan is to have its shares listed on NYSE Arca under the symbol GBTC and issue shares on a continuous basis once it receives approval for form S-3 and a separate 19b-4 filing from NYSE Arca.
Notably, other major asset management firms like BlackRock and Fidelity are also in pursuit of SEC approval for spot Bitcoin ETFs. On Wednesday, President Gary Gensler revealed that the agency’s staff is actively reviewing these multiple applications.