The petition that the asset manager Grayscale submitted to the US District of Columbia Circuit for a review of their Bitcoin Trust was approved, as stated in the document filed with the court. The petition submitted by the asset manager to have their financial product converted into a Bitcoin Exchange Traded Fund was granted by Judge Rao of the Circuit Court.
Grayscale may now be able to convert its Grayscale Bitcoin Trust (GBTC) into an Exchange Traded Fund (ETF) for Bitcoin, according to the ruling that was issued by the court. The Commission decided not to consider the petition presented by Grayscale because the cryptocurrency market is susceptible to manipulation and could put clients in danger.
As a direct consequence of this, the investment manager filed a lawsuit against the Commission, which finally led to the decision that was made just a few minutes ago. Michael Sonnenshein, the Chief Executive Officer of Grayscale, expressed his satisfaction with the verdict through his X handle, which read: Grayscale's appeal to the United States Court of Appeals for the District of Columbia Circuit was successful, and the court reversed the judgment of the lower court to dismiss the case. We would like to extend our deepest gratitude to those who have traveled on this adventure with us and those who have invested in our company. We are grateful to you for the support and encouragement we have received.
The legal team representing Grayscale is currently deliberating over the next action that should be taken. Sonnenshein also mentioned that additional details would be shared on the official social media channels of the asset manager as soon as it was feasible to do so.
On the other hand, two ETF specialists who work for Bloomberg Intelligence, James Seyffart and Eric Balchunas, presented their commentary on the court ruling. They were Eric Balchunas and James Seyffart. The following is a confirmation of the asset manager's victory over the Commissioner written by Seyffart: The outcome of Grayscale's legal conflict with the SEC has been determined, and the company emerged victorious. The decision of the Securities and Exchange Commission (SEC) to refuse the conversion of $GBTC into an ETF is being reversed by the District of Columbia Circuit Court of Appeals.
CRYPTOCURRENCY WINS BIG IN SEC VS. THE REST OF THE WORLD
Even if today's decision is significant, the asset manager must still argue their case before the Commission. In the United States, this government agency still has the authority to reject or approve exchange-traded funds (ETFs).
The judge responsible for the ruling has expressed his thoughts regarding the matter publicly, criticizing the SEC for dismissing GBTC's application to become a Bitcoin ETF. The judge admonished the SEC for failing to provide the cryptocurrency industry with sufficient regulatory clarity. The judge ruled that the requirement that administrative authorities must treat similar situations the same way is a fundamental principle of administrative law. Recently, the Securities and Exchange Commission gave its blessing for trading two different bitcoin futures on national exchanges, but they turned down Grayscale's application for a bitcoin fund. Grayscale argues that its planned bitcoin exchange-traded products should have been permitted to trade on NYSE Arca. The company has requested a review of the Commission's order denying approval. It was decided (...)
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