US May See First Bitcoin Spot ETF as Grayscale Wins Suit Against SEC, BTC Gains $1400

Bitcoin trades at $27,749 as US Court orders SEC to review its decision to reject Grayscale’s spot Bitcoin ETF application.

In a remarkable turn of events, the crypto market suddenly entered a bullish trend, with Bitcoin gaining over $1,400 in under 60 minutes. CoinMarketCap data shows Bitcoin now trades at $27,749 after struggling around $26k in the past week.

Expectedly, other cryptocurrencies have followed Bitcoin’s leap, pulling significant gains over the past hour. Digital assets on CoinMarketCap’s first page are noticeably relishing in the green.

Notably, the factor propelling the crypto market is a pivotal development from a federal court in the United States.

– Advertisement –

Grayscale Wins Suit Against SEC

In particular, the US Court of Appeals for the District of Columbia Circuit has ruled in favor of Grayscale Investments in its lawsuit against the US Securities and Exchange Commission (SEC). The court ordered the SEC to review its decision to reject Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF). 

Prominent Chinese reporter Colin Wu shared the development with the crypto community in a recent tweet. The statement read:

“The Federal Court ruled that Grayscale’s petition for review be granted and the SEC’s order be vacated, in accordance with the opinion of the court filed here in this date. SEC must review its rejection of Grayscale Investments’ attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.”

For context, Grayscale applied with the SEC in 2021 to convert GBTC into a spot ETF. However, the US regulator rejected the application. In its disapproval statement, the SEC contended that Grayscale fell short of its criteria for preventing fraud and safeguarding investors. 

In 2022, the investment firm sued the regulator, arguing that the SEC’s decision was not based on good faith.

Notably, the court based its decision on the reasoning that the SEC’s rejection of GBTC’s application was “arbitrary and capricious.” According to the judge, the regulator failed to explain why it treated GBTC differently from similar products.

It is worth mentioning that the SEC has approved ETFs based on Bitcoin futures but rejects spot ETFs. In a recent statement, Grayscale argued that the correlation between Bitcoin futures and spot is 99%. Therefore, the regular has no tangible reason to reject its spot ETF application.

This win has opened chances for first spot BTC launch in US.

• 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. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• ChartPrime. Elevate your Trading Game with ChartPrime. Access Here.
• BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
• Source: https://thecryptobasic.com/2023/08/29/us-may-see-first-bitcoin-spot-etf-as-grayscale-wins-suit-against-sec-btc-gains-1400/?utm_source=rss&utm_medium=rss&utm_campaign=us-may-see-first-bitcoin-spot-etf-as-grayscale-wins-suit-against-sec-btc-gains-1400