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The price of bitcoin surged on Tuesday after the U.S. Court of Appeals for the DC Circuit ruled in favor of crypto investment giant Grayscale, stating that the SEC’s denial of permission to convert its bitcoin trust into an ETF was incorrect.
According to Coin Metrics, Bitcoin jumped about 7.5% following the ruling to $27,911.67, resulting in a broader increase in cryptocurrencies and crypto equities.
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The SEC’s denial of Grayscale’s proposal to convert its popular bitcoin trust into an ETF was deemed arbitrary and capricious by the U.S. Court of Appeals for the DC Circuit in its recent ruling. The court stated that the SEC’s approval of two bitcoin futures ETPs while denying Grayscale’s proposed bitcoin ETP without adequate explanation is unlawful.
This ruling increases the likelihood of other bitcoin ETF applications, including those from BlackRock, Fidelity, WisdomTree, VanEck, and Invesco, being approved by the SEC. A U.S. bitcoin ETF would provide retail and institutional investors, as well as wealth managers, with a way to gain exposure to bitcoin without directly holding it.
The SEC has stated that it is reviewing the court’s decision to determine its next steps.
Steve Kurz, Global Head of Asset Management at Galaxy, believes that today’s decision confirms that a bitcoin ETF in the U.S. is a matter of when, not if. He emphasizes the potential of ETFs to democratize cryptocurrency investing and promote accessibility and transparency in the asset class.
This ruling is a relief for crypto market participants who have been frustrated by the SEC’s regulatory approach under Chair Gary Gensler. The industry has been seeking clarity and a consistent regulatory framework to establish compliant companies in the crypto space.
Grayscale initiated its lawsuit against the SEC in June 2022 after the agency rejected its application to convert its bitcoin trust, known as GBTC, into an ETF
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
