Recently, the crypto industry saw another significant event when Grayscale won the case against the U.S. SEC. In the ruling, the court favored the biggest Bitcoin (BTC) fund manager who filed with the financial regulator for a spot Bitcoin ETF. The fund manager’s win brought fresh optimism in the Bitcoin ETF debate. Grayscale also reported writing a letter to the SEC urging them to approve the proposed ETF.
The law firm of Grayscale, DavisPork, requested the Securities and Exchange Commission (SEC) to approve the proposed Bitcoin exchange-traded fund quickly, in a letter filed on Tuesday, Reuters reported.
“We hope you will agree that the best use of resources now is for the (SEC) to issue an order approving the product,” DavisPolk noted.
The managing firm of Grayscale Bitcoin Trust (GBTC), the biggest Bitcoin fund, filed with the SEC to convert its fund into an ETF. The conversion would have provided exposure of GBTC to more investors and users.
Though the financial watchdog approved futures Bitcoin ETFs in the past, it denied Grayscale’s application for a spot Bitcoin ETF.
Grayscale took to the court and asked for legal interference in the issue alleging that the SEC was rejecting the proposal without any concrete reason. After over a year of legal proceedings, the United States District of Columbia Court of Appeals ruled on August 30. The ruling suggests that the SEC did wrong by denying the Bitcoin ETF proposal from Grayscale since it did not explain the reasons.
The ruling in favor of the digital asset fund manager would not make Grayscale review the application. However, the review does not guarantee the certainty of ETF’s approval. Also, the SEC reported a possible appeal for the issue.
Wins in Favor of Bitcoin (BTC) and Crypto
Following Grayscale’s win in the court against the SEC, the crypto market went through another tide of optimism. Bitcoin (BTC) price saw a jump of nearly 7% in the next trading sessions.
In another significant win for the cryptocurrency industry, a federal judge in New York has given a favorable ruling. This marks the second major victory for the sector, following a July decision that cleared Ripple Labs of wrongdoing in the sale of its tokens on exchanges.
Despite the Securities and Exchange Commission’s (SEC) intention to appeal the earlier ruling, this latest development has cast doubts on the regulatory body’s approach in the ongoing legal battle.