Grayscale Scores Victory in Court: Bitcoin ETF Nears Reality
The Securities and Exchange Commission (SEC) is not expected to challenge a recent legal setback faced by Grayscale Investments, a source familiar with the matter confirmed.
This development brings the possibility of the first Bitcoin ETF closer to reality.
The SEC had until midnight on Friday to request a new hearing in the case against Grayscale Investments, which challenged the SEC’s rejection of Grayscale’s bid to convert the Grayscale Bitcoin Trust into an ETF. In this case, judges ruled that the SEC’s rejection was arbitrary.
The SEC argued that Bitcoin trading platforms lacked sufficient surveillance to detect fraud and manipulation, but the judges disagreed, citing the agency’s approval of exchange-traded products holding Bitcoin futures.
While the three judges were unanimous in their decision, the SEC had the option to request an “en banc” hearing with all appellate court judges, which they have chosen not to pursue.
The Grayscale trust operates as a closed-end fund, trading at a significant discount on its underlying asset value. This discount is expected to narrow if the trust converts into an ETF.
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This development is a significant indicator that the SEC is moving closer to allowing spot Bitcoin ETFs into the market. Notable financial firms like BlackRock, Fidelity Investments, and Invesco have filed to launch Bitcoin ETFs.
It’s important to note that the SEC may still deny Grayscale’s application for other reasons, and further approvals are required to bring such a product to market. However, the decision made on Friday is a vital step forward for Bitcoin ETFs.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
