Title: D.C. Court of Appeals Rules in Favor of Grayscale in Bitcoin Spot ETF Lawsuit
In a significant victory for Grayscale and the cryptocurrency community, the D.C. Circuit Court of Appeals has ruled in favor of Grayscale in its lawsuit against the Securities and Exchange Commission (SEC) pertaining to a bitcoin spot ETF. This ruling comes after the SEC denied Grayscale’s application to convert its Grayscale Bitcoin Trust into an ETF.
Grayscale, a leading digital currency asset manager, currently holds an impressive 3.4% of the total outstanding bitcoin, valued at tens of billions of dollars. Craig Salm, Grayscale’s chief legal officer, hailed the court’s decision as a monumental win for Grayscale, its shareholders, and the entire crypto community.
Salm expressed his optimism regarding the SEC’s future approval of the bitcoin spot ETF, stating that the ruling sets a positive precedent and increases the likelihood of acceptance. He anticipates that the SEC will give its approval in the forthcoming time, enabling Grayscale to offer its investors the benefits of an ETF.
Despite the court’s ruling, the timeline for the ETF’s approval remains uncertain. The decision triggers a 45-day review period, during which the SEC could either uphold the court’s ruling or seek a rehearing. Nevertheless, industry experts at Bloomberg ETF analysts have raised the odds of SEC approval for a bitcoin spot ETF to 75% this year and a staggering 95% by the end of 2024.
Salm stressed the importance of prompt approval for the nearly million investors in Grayscale Bitcoin Trust (GBTC). Currently, GBTC trades at a discount compared to an ETF, creating a disparity that could be resolved once the SEC greenlights its transformation into an ETF. Salm believes that the approval should happen soon, benefiting not only Grayscale’s investors but also the wider crypto market.
The ruling by the D.C. Circuit Court of Appeals is a noteworthy development within the cryptocurrency industry, as it marks a significant step toward bringing a bitcoin spot ETF to the market. Grayscale’s victory in its legal battle against the SEC serves as a beacon of hope for the expanding number of investors seeking regulated and accessible cryptocurrency investment opportunities.
As the waiting game continues during the review period, industry participants and crypto enthusiasts eagerly anticipate the SEC’s final decision, which could reshape the future landscape of digital asset investments.
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