Court Rules in Favor of Grayscale Against SEC in Bitcoin ETF Conversion Lawsuit

A D.C. courtroom has dominated in favor of Grayscale, the biggest crypto asset supervisor, in its lawsuit difficult the U.S. Securities and Exchange Commission’s choice to disclaim the conversion of GBTC to a spot bitcoin exchange-traded fund (ETF). The securities regulator “failed to explain its different treatment of similar products,” stated the Circuit decide presiding over the Grayscale-SEC case.

Court Sides With Grayscale Against SEC

The United States Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments towards the U.S. Securities and Exchange Commission on Tuesday concerning the corporate’s proposed bitcoin exchange-traded fund (ETF) conversion.

“The D.C. Circuit ruled 3-0 in favor of Grayscale and GBTC,” the crypto asset administration agency wrote on the social media platform X. “This is a monumental step forward for all who have been advocating for bitcoin exposure through the added protections of the ETF wrapper.” Commenting on the courtroom ruling, Grayscale CEO Michael Sonnenshein wrote:

The D.C. Circuit dominated in favor of Grayscale in our lawsuit difficult the SEC’s choice to disclaim GBTC’s conversion to an ETF!

Grayscale has been making an attempt to convert its flagship bitcoin belief (GBTC) to a spot bitcoin ETF. However, the securities regulator has denied the crypto asset supervisor’s software. Grayscale subsequently filed a lawsuit difficult the Commission’s denial order.

So far, the SEC has not accredited a spot bitcoin ETF though the company has greenlighted a number of bitcoin futures ETFs. Quite a few bitcoin ETF proposals have been filed with the regulator, together with one by the world’s largest asset supervisor, Blackrock.

In its “petitioning for review of the Commission’s denial order,” Grayscale maintains that its proposed bitcoin ETF product “is materially much like the bitcoin futures exchange-traded merchandise and may have been accredited to commerce on NYSE Arca,” the courtroom order reveals.

Circuit Judge Neomi Rao, one of many three judges presiding over the Grayscale-SEC case, said within the courtroom order issued on Tuesday:

We agree. The denial of Grayscale’s proposal was arbitrary and capricious as a result of the Commission failed to elucidate its completely different therapy of comparable merchandise. We due to this fact grant Grayscale’s petition and vacate the order.

What do you consider the Circuit Court siding with Grayscale towards the SEC? Do you suppose the SEC will quickly approve a spot bitcoin ETF? Let us know within the feedback part beneath.