The judge in the Grayscale vs SEC case has decided in favour of Grayscale. Once more the SEC is defeated in the courts over crypto-related judgements.
BTC surges on the news
As the news dropped on Twitter that the SEC has been embarrassed yet again, BTC shot higher. At time of going to press BTC is up nearly 5% at $27,350. An assault on $28,000 is potentially the next step.
SEC losing its battle
However, all is not won yet. Losing this particular battle does not mean that the SEC has to approve a Grayscale ETF. It just means that it cannot disapprove it over the reasons that it has so far given.
Be that as it may, the judge maintained that the SEC was unable to explain how Grayscale was wrong in its summation of the relationship between the bitcoin spot and futures markets.
Bitcoin spot ETFs about to be approved?
The news could now lead to a massive influx of capital into bitcoin should the Grayscale ETF go ahead, and of course there are a whole raft of EFTs that can potentially be approved as early as this Friday, when the SEC has to either approve them, or announce that it is going to put its decision back.
Grayscale’s lawsuit against the SEC was launched in October 2022 after the SEC had rejected Grayscale’s latest application for a bitcoin ETF. The Grayscale case was mainly based on the fact that the SEC had continually rejected bitcoin spot ETFs while at the same time approving bitcoin futures ETFs, which have been allowed since 2021.
Grayscale to take next steps
A representative of Grayscale, was quoted in an article just published by Blockworks.co:
“This is a monumental step forward for American investors, the bitcoin ecosystem and all those who have been advocating for bitcoin exposure through the added protections of the ETF wrapper,”
They added:
(Grayscale) “will be pursuing next steps with the SEC” after reviewing the opinion,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
