SEC will not appeal Grayscale decision, bringing spot Bitcoin ETFs closer to reality

cyptouser9 months agoCryptocurrencies News175

In a decisive development, the U.S. Securities and Exchange Commission (SEC) has decided not to appeal a recent court ruling that found it was unjust to reject an application from Grayscale Investments to create a spot bitcoin exchange-traded fund (ETF).

The District of Columbia Court of Appeals in Washington had ruled in August that the SEC’s rejection of Grayscale’s proposed Bitcoin ETF was erroneous. The SEC’s decision not to contest the ruling could potentially expedite the review of Grayscale’s application.

A spot Bitcoin ETF would offer investors exposure to the world’s largest cryptocurrency by market capitalization without the need to directly own it. However, the SEC has consistently denied all spot Bitcoin ETF applications, including Grayscale’s, on the grounds that the applicants lacked sufficient measures to safeguard investors from market manipulation.

In response, Grayscale contended that the SEC’s approval of certain surveillance agreements to thwart fraud in Bitcoin futures-based ETFs should be sufficient for their spot ETF.

Grayscale’s legal battle hinged on the SEC’s inconsistent treatment of spot and futures Bitcoin ETFs, although both pose similar risks and are priced based on the same underlying spot markets. The argument was built on the premise that both spot and futures funds depend on Bitcoin’s price. The appeals court concurred, stating that the SEC failed to explain the material difference between the two arrangements, thus arbitrarily rejecting Grayscale’s application.

The news has been well-received among the crypto community, with the price of Bitcoin (BTC) breaking $27,000 after the news.

The SEC’s declination to appeal the court’s ruling now paves the way for other asset managers, including BlackRock, Fidelity, and Invesco, who have similar filings pending with the SEC for a spot Bitcoin ETF. The SEC is expected to decide on these applications by next year at the latest.

 

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

BlackRock has ‘no commercial relationship’ with Hedera, HBAR sinks 32%

BlackRock has ‘no commercial relationship’ with Hedera, HBAR sinks 32%

1205f261˃BlackRock has confirmed it has “no commercial relationship” with Hedera and that it did not...

Chainlink data streams go live on Avalanche Network

Chainlink data streams go live on Avalanche Network

55966e89˃Oracle network Chainlink has launched its Data Streams product on the Avalanche network. GM...

Uniswap trading dips 10% following SEC Wells notice, UNI token hits multi-week low

Trading activity on the Uniswap decentralized exchange dipped by almost 10% the past day after the U...

Web3 security expert challenges AI for audit competition: Here’s the result

Web3 security expert challenges AI for audit competition: Here’s the result

55966e89˃An audit challenge between Nirlin and Bunzz Audit highlighted the strengths and weaknesses...

Small creditors put at risk by latest FTX bankruptcy development

55966e89˃A significant claim against FTX EU — previously known as K-DNA Financial Services —has been...

Stablecoin market cap rises to 2-year highs as dominance slides to 6%: CCData

Stablecoin market cap rises to 2-year highs as dominance slides to 6%: CCData

55966e89˃According to a new report by CCData, stablecoin market capitalization reached its highest l...