Crypto asset manager Grayscale Bitcoin Trust (GBTC) has scored a significant victory against the U.S. Securities and Exchange Commission in its efforts to convert its over-the-counter GBTC application into a listed Bitcoin ETF.
According to August 29 court filings, U.S. Court of Appeals Circuit Judge Neomi Rao ordered Grayscale’s petition for review be granted and the SEC’s order to deny the GBTC listing application to be vacated. Previously, Judge Rao said that the SEC did not “offer any explanation” as to why Grayscale was in the wrong. However, the order does not guarantee listing a Grayscale spot Bitcoin ETF.
The court is still pushing for the SEC to reconsider the application and make a new decision on whether to approve or reject it.
The Judgment Could Set a Precedent of the Other ETFs in Line
The race to have the first spot Bitcoin ETF in America has been ongoing since last month. With asset management firms like BlackRock and Fidelity getting in on the action, many assume the offering will be available sooner or later.
The ruling sets an important precedent and could pave the way for other Bitcoin spot ETF applications before the SEC. Several other high-profile asset managers have filed for spot bitcoin ETFs, but none have been approved. This court decision pressures the SEC to approve a spot bitcoin ETF.
The first application for the conversion arrived in October 2021. However, the SEC rejected the bid, citing failure to adhere to market manipulation prevention questions brought about by the agency. Market manipulation concerns have long been the most significant roadblock in spotting Bitcoin ETF approval.
Subsequently, Grayscale filed an appeal, asking for the rejection to be reviewed by the US Court of Appeals for the District of Columbia Circuit. The court has granted that review in what very well may be an essential moment. Indeed, Grayscale could now have a leg up on the competition for the ETF’s creation.
Bitcoin Jumps as Grayscale Wins Lawsuit
Bitcoin has rallied to $26,800 from $26,000 just before the decision. After the judgment, the price of Bitcoin has rallied to $27,400 and still pumping. Many terms this as a potential bull run.