Spot bitcoin ETF inches ahead with SEC’s court loss
The SEC’s loss in court Tuesday means that the agency must go back and review Grayscale’s spot bitcoin ETF application — but don’t expect any products to come to market soon.
In a ruling issued earlier Tuesday, the U.S. Court of Appeals for the District of Columbia Circuit wrote that the Securities and Exchange Commission could not explain why it denied Grayscale’s application, as it had approved bitcoin futures exchange-traded funds.
“In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful,” the court wrote.
The news was quickly welcomed by the crypto investing community, and it’s something that the many firms that have filed for spot bitcoin ETFs will be watching closely. But the next steps are cloudy, as the SEC could appeal the decision — and even if it doesn’t, it could still reject the Grayscale application.
Although the regulator has approved bitcoin futures products, it has pointed to potential manipulation and a lack of investor protection as problems for spot crypto ETFs. Grayscale had filed to convert its Bitcoin Trust to an ETF.
“This is a historic milestone for American investors, the bitcoin ecosystem and all those who have been advocating for bitcoin exposure through the added protections of the ETF wrapper,” Grayscale CEO Michael Sonnenshein said in an announcement. “Grayscale has adhered to U.S. financial rules and regulations in building our product suite since our founding in 2013, underpinned by one fundamental belief: investors deserve transparent, regulated access to crypto. It’s incredibly exciting that we are one step closer to making a U.S. spot bitcoin ETF a reality.”
Numerous firms have filed applications this year with the SEC for spot bitcoin
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