Grayscale Earns Win in Court in Battle with the SEC Regarding Bitcoin ETF, Bitcoin Rises

Bitcoin caught an updraft today following the news that Grayscale booked a victory in the US Court of Appeals in its ongoing battle with the Securities and Exchange Commission (SEC) in regard to its effort to list a Bitcoin ETF.

Grayscale already trades the Grayscale Bitcoin Trust (GBTC) on OTC Markets with a market cap of over a billion dollars. Grayscale aims to launch an exchange-traded product (ETP) as it believes this will garner more investor attention. Grayscale is not alone in this ambition but the SEC has long denied attempts to trade a Bitcoin ETF.

In its challenge of the SEC’s decision to deny Bitcoin ETF’s, Grayscale says the Commission has “acted arbitrarily and capriciously,” while approving Bitcoin Future ETPs.

The court, in announcing its decision to side with Grayscale, said:

“The Commission failed to adequately explain why it approved the listing of two Bitcoin futures ETPs but not Grayscale’s proposed Bitcoin ETP. In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful. We therefore grant Grayscale’s petition for review and vacate the Commission’s order.”

Bitcoin jumped by around 6% following the decision, and GBTC rose by almost 17% as investor sentiment indicates that the SEC may be losing its battle to block Bitcoin ETPs.

Grayscale described the Court’s decision as a “monumental step forward,” adding that they are reviewing the details of the Court’s decision and will share more information as soon as practical.


Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Sponsored Links by DQ Promote



Send this to a friend