U.S. Court orders US SEC to reexamine Grayscale’s spot Bitcoin ETF bid, citing its similarity to approved futures ETFs. By Maxwell Mutuma 2 hours ago Updated 53 mins ago
The U.S. Court of Appeals for the D.C. Circuit issued a mandate compelling the Securities and Exchange Commission (SEC) to revisit Grayscale Investments’ application for a spot Bitcoin ETF. This decision stems from the court’s previous ruling, emphasizing the similarities between Grayscale’s proposition and the already sanctioned Bitcoin futures ETFs. Consequently, the court noted that Grayscale’s product merits approval, given its similar capacity for identifying market misconduct.
The court’s formal directive, a customary procedural stride, was anticipated following the SEC’s recent decision not to contest the August ruling. Besides, this development catalyzed Grayscale’s move to submit a revised filing in hopes of finally transitioning its flagship GBTC fund into a fully-fledged ETF.
Court Backs Grayscale’s Bitcoin ETF Quest
The mandate reinforces Grayscale’s argument that its proposed Bitcoin ETF mirrors the characteristics of approved Bitcoin futures ETFs; hence, it should not face undue hurdles. Significantly, the firm resubmitted its application via an expedited S-3 filing, diverging from the standard S-1 process for new share offerings. Additionally, Grayscale plans to list its shares on NYSE Arca, pending the green light on its current submissions, including a separate filing necessary for NYSE Arca.
However, ambiguity lingers over the SEC’s next steps despite the court’s push. The regulatory body, notorious for its meticulous scrutiny, retains the authority to find new grounds for rejection, keeping market participants on their toes.
Major Firms Seek SEC’s ETF Approval
Grayscale isn’t alone in its pursuit. Other industry giants, like BlackRock and Fidelity, have thrown their hats into the ring, seeking the SEC’s blessing for their spot in Bitcoin ETFs. SEC Chair Gary Gensler acknowledged the agency’s receipt of multiple filings, without giving specific comments on Grayscale’s case. Moreover, he detailed the rigorous review process proposals undergo, akin to public offering vetting, underscoring the agency’s commitment to thorough evaluation.
Best Crypto Exchanges and Apps September 2023 Must Read Top Meme Coins to Buy Now: What You Need to Know Must Read Top 10 Web3 Games To Explore In 2023; Here List Must Read
This influx of submissions indicates a growing appetite for such financial products. However, it also means the SEC must navigate a complex landscape of applications, balancing market innovation with consumer protection.
Read Also: BlackRock to Seed Spot Bitcoin ETF In October; Why It’s A Big Deal?