Grayscale Lands Court Victory Over SEC In Battle For Spot Bitcoin ETF

Grayscale Investments, a leading crypto investment firm, landed a huge victory on Tuesday in its legal tussle with the Securities and Exchange Commission, with a federal appeals court ruling in favor of Grayscale and compelling the SEC to reevaluate its earlier denial of Grayscale’s proposal to convert its Bitcoin
BTC
Trust, called GBTC, into an ETF. This judgement has sent ripples across the crypto industry, leading to an immediate surge in Bitcoin prices and offering hope for the approval of spot bitcoin ETFs in the U.S.

The legal conflict was initiated when the SEC blocked Grayscale’s attempt to convert its Bitcoin Trust into an ETF. Grayscale retaliated by suing the SEC in June 2022, arguing that the SEC had acted arbitrarily in approving ETFs investing in bitcoin futures contracts while rejecting products that aimed to hold bitcoin directly.