Grayscale Marks Victory Against SEC; Bitcoin Price Shoots Over $27K


Grayscale wins the case against SEC and now set to pull off Bitcoin ETF

In a significant legal development, Grayscale Investments secured a favorable outcome in its legal battle against the U.S. Securities and Exchange Commission (SEC). The court issued an opinion that could be considered a victory for Grayscale in its case related to the application for a spot bitcoin exchange-traded fund (ETF). 

The ruling marks a notable advancement for Grayscale's efforts to gain approval for its proposed bitcoin ETF, highlighting the ongoing dynamics and legal considerations within the cryptocurrency and regulatory realms.

The significance of this development extends beyond the immediate case, potentially carrying far-reaching consequences. Numerous companies, including major players like BlackRock and Fidelity, have submitted applications for spot bitcoin exchange-traded funds (ETFs) in recent months. 

The court's opinion specifically targeted the U.S. Securities and Exchange Commission's (SEC) approach towards spot bitcoin exchange-traded funds (ETFs) and bitcoin futures ETFs. In its analysis, the court examined Grayscale Investments' proposed bitcoin ETF and noted its similarities with previously approved bitcoin futures ETFs. 

The court acknowledged that the underlying assets and surveillance sharing agreements of Grayscale's bitcoin ETF closely resemble those of the already authorized bitcoin futures ETFs. 

Consequently, the court concluded that Grayscale's proposed ETF should possess an equivalent capability to identify and address fraudulent or manipulative activities within the markets for both bitcoin and bitcoin futures. This analysis showcases the court's examination of the alignment between various ETF types and emphasizes the potential parity in their ability to safeguard market integrity.

In the wake of one of the biggest Bitcoin fund’s win against the regulator, Bitcoin (BTC) price witnessed a jump. CoinMarketCap data shows Bitcoin is trading at $27,448 following a 5% rise in the last 24 hours. 

Court Statements on Grayscale vs SEC Case

The court opinion highlighted that the SEC's rejection of Grayscale's proposal lacked clarity and justification in its differential treatment of similar products. Consequently, the court granted Grayscale's petition and nullified the prior order.

The SEC has a 45-day window to seek an en banc hearing, a rehearing with all three judges. Subsequently, the court will issue a definitive mandate outlining the ensuing course of action.

A spokesperson from Grayscale expressed satisfaction with the D.C. Circuit's decision, emphasizing that it favors the company's lawsuit contesting the SEC's refusal of GBTC's conversion into an ETF.

The spokesperson deemed this verdict as a significant stride for American investors, the Bitcoin ecosystem, and supporters advocating for Bitcoin exposure through the protective ETF framework. Grayscale, along with its legal advisors, is in the process of analyzing the court's opinion and will proceed with the next steps in collaboration with the SEC. Further information will be disseminated promptly.

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