Federal Judge Overturns SEC's Denial of Bitcoin ETF Offering, Opening Path for Potential Approval
Summary:
A federal judge has overturned the SEC's denial of a Bitcoin ETF offering by Grayscale Investments. However, experts believe this does not guarantee the approval of the first BTC spot ETF in the US. The SEC has denied all spot crypto ETF offerings to date and may continue delaying decisions on pending applications. The SEC has not commented on the appeals court decision but is expected to review the case. Grayscale's victory could pave the way for eventual approval, putting pressure on the SEC to justify its rejection of spot Bitcoin ETFs. The next steps for Grayscale and the SEC are unclear.
A federal judge has overturned the United States Securities and Exchange Commission's (SEC) denial of a Bitcoin (BTC) exchange-traded fund (ETF) offering from Grayscale Investments through its Bitcoin Trust. However, experts believe that this court ruling does not guarantee the approval of the first BTC spot ETF in the country. The court ruled that the SEC's grounds for denying Grayscale's Bitcoin ETF were insufficient and that the matter will be sent back to the commission for review. Despite this development, the SEC has denied all spot crypto ETF offerings to date, and the decision on other pending applications may be delayed until March 2024. The SEC has not publicly commented on the appeals court decision but is expected to review the case. While the commission will have the opportunity to appeal, experts believe that this victory for Grayscale could lead to eventual approval. The ruling puts pressure on the SEC's justification for rejecting spot Bitcoin ETF applications and could pave the way for wider investor participation in the spot BTC market in the US. The next steps for Grayscale or the SEC are unclear, as the asset manager may choose to refile its application or the SEC may appeal the decision.
Published At
8/29/2023 7:45:00 PM
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