A US court ruled in favor of Grayscale in its lawsuit against the SEC over the approval of a spot Bitcoin ETF.
A US appeals court has ruled in favor of Grayscale in its lawsuit against the SEC over the approval of a spot Bitcoin ETF. This is a major victory for the cryptocurrency industry, and it could pave the way for the first ever spot Bitcoin ETF to be approved in the United States.
A spot ETF is a type of investment fund that tracks the price of Bitcoin. Investors can buy shares in the ETF to gain exposure to Bitcoin, without having to directly buy the cryptocurrency on a crypto exchange.
Grayscale’s Spot Bitcoin ETF is moving closer to approval
A judge has ruled in favor of Grayscale in its lawsuit against the SEC, clearing the way for the approval of the Grayscale spot Bitcoin ETF. The judge said that the SEC failed to recognize the “obvious financial and mathematical relationship between the spot and futures markets.” However, the spot ETF approval is not imminent yet, as the SEC may still appeal the decision.
The price of Bitcoin went up in response to the lawsuit ruling
Grayscale’s Argument
Grayscale sued the US SEC because the SEC rejected its spot Bitcoin ETF application but approved futures ETFs. Grayscale argued that the SEC should treat like cases alike, and that the surveillance arrangements for futures ETFs should also justify the case for spot ETFs. The judge agreed with Grayscale and said that the SEC’s decision was arbitrary.
The judge’s ruling could now set a precedent for the SEC to approve spot Bitcoin ETFs. Other asset management firms, such as Blackrock, Fidelity, WisdomTree, VanEck, Bitwise, and Invesco, are also vying for spot Bitcoin ETF approval.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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