Bitcoin ETF gets closer: SEC loses battle against Grayscale

Wed 30 Aug 2023 ▪ 3 min of reading ▪ by Fitah
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While the SEC is waging an anti-crypto war, the US regulator has just suffered a setback against Grayscale regarding the Bitcoin ETF. The federal court ruled today in favor of Grayscale’s petition for review. In setting aside the SEC’s order, the court ruled in favor of the American investment giant. This decision could pave the way for approval of the Bitcoin ETF.


Review granted for Grayscale

Last July, Grayscale sued the SEC for rejecting its application for a Bitcoin spot ETF in 2022. Yesterday, the U.S. District Court for the District of Columbia ruled in Grayscale’s favor, finding that the SEC’s rejection of this spot Bitcoin ETF was improper. It ordered that Grayscale US’s petition for review be granted. But also, that the SEC’s order be set aside. The ruling obliges the Commission to reconsider its rejection of Grayscale Bitcoin Trust’s (GBTC) application for conversion into an ETF.

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The judge’s decision marks Grayscale’s victory over the SEC. The US regulator wrongly rejected Grayscale’s application to list an ETF that tracks the price of Bitcoin. The crypto community has been following this case closely, trying for years to convince the SEC to approve this ETF.

Bitcoin ETF on the verge of approval

This news suggests that the Bitcoin ETF could be validated. This will enable investors to gain exposure to Bitcoin (BTC) without having to own it. With the ETF race raging in the financial sector, Grayscale’s action marks a decisive step forward. As a reminder, Grayscale had already applied to the SEC for ETF approval in October 2021.

However, the SEC is concerned that this type of asset is vulnerable to manipulation. However, Jay Clayton, former SEC chairman, says the bitcoin ETF could be approved. He explains that this would be possible if there are appropriate regulatory safeguards, similar to those in the futures market.

In response to this “SEC defeat”, the bitcoin (BTC) price climbed 5% within an hour.

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Fitah avatar

Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.