The Crypto Roundup: 16 October 2023 | CryptoCompare.com

The U.S. Securities and Exchange Commission (SEC) has chosen not to appeal a court decision reversing its denial of Grayscale’s Bitcoin Trust (GBTC) becoming a spot Bitcoin exchange-traded fund (ETF).

In August, a Washington court said the SEC made a mistake when it turned down Grayscale’s plan to turn the fund into a spot bitcoin ETF, which would make it easier for investors to buy and sell the digital currency.

The SEC’s decision not to fight the court’s verdictmeans that the regulator will soon look at Grayscale’s application again. This case has been closely watched as the industry has waitied for 10 years for such products to be approved.

A spot Bitcoin ETF would allow investors to gain exposure to the leading cryptocurrency without having to own it directly, meaning they wouldn’t have to manage their own private keys. The SEC has so far rejected all spot Bitcoin ETF applications on the grounds that applicants did not prove they could keep investors safe from people who might try to manipulate the market.

Given the refusal, Grayscale sued the SEC, arguing that the regulator had previously greenlit surveillance agreements to prevent fraud in bitcoin futures ETFs, noting a similar arrangement should be satisfactory for Grayscale’s spot ETF, as both spot and futures funds rely on Bitcoin’s price.

The appeals court ruled that the SEC’s refusal of Grayscale’s request was arbitrary as it never explained why the two arrangements were significantly distinct.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://www.cryptocompare.com/email-updates/daily/2023/oct/16/