Judge Orders Review of SEC’s Denial of Grayscale’s Bitcoin ETF Application

One sentence summary – A judge has ordered a review of the SEC’s denial of Grayscale’s spot Bitcoin ETF application, which is seen as significant for investors and the Bitcoin ecosystem, as it would provide exposure to Bitcoin through a traditional stock exchange, and following the court’s decision, Bitcoin and the broader crypto market experienced gains, while the SEC and Grayscale have the option to appeal the decision within 45 days.

At a glance

  • A judge has ordered a review of the SEC’s denial of Grayscale’s spot Bitcoin ETF application.
  • The SEC has denied several applications for spot Bitcoin ETFs over the past decade.
  • The court stated that the SEC lacked a coherent explanation for the denial.
  • A spot Bitcoin ETF would allow investors to gain exposure to Bitcoin through a traditional stock exchange.
  • Bitcoin and the broader crypto market experienced gains after the court’s decision.

The details




News Article

A judge has ordered a review of the Securities and Exchange Commission’s (SEC) denial of Grayscale’s spot Bitcoin ETF application.

The SEC has denied several applications for spot Bitcoin ETFs over the past decade.

The denials were based on concerns about potential market manipulation.

The court stated that the SEC lacked a coherent explanation for the denial.

The court called it “unlawful” to treat similar products differently.

Grayscale sees this decision as a significant development for investors and the Bitcoin ecosystem.

A spot Bitcoin ETF would allow investors to gain exposure to Bitcoin through a traditional stock exchange.

Investors could hold the coin in a brokerage account.

Bitcoin rallied 5% after the court’s decision was released.

The broader crypto market also saw gains.

Both the SEC and Grayscale have 45 days to appeal the court’s decision.

En banc reviews, where all of the court’s judges weigh in during a rehearing, are rare.

Grayscale filed a lawsuit against the SEC last June.

The lawsuit was filed after the rejection of its Bitcoin Trust conversion.

Bitcoin futures ETFs have been approved by the SEC.

Spot-based ETFs have been denied.

The court criticized the SEC’s denial as “arbitrary and capricious”.

The court questioned the distinction between fraud and manipulation concerns in spot and futures markets.

Wall Street giants like BlackRock and Fidelity have filed applications for spot Bitcoin ETFs.

Grayscale argued that if one spot Bitcoin ETF is approved, all pending applications should be approved as well.

In summary, a judge has ordered a review of the SEC’s denial of Grayscale’s spot Bitcoin ETF application.

This decision is seen as significant for investors and the Bitcoin ecosystem.

A spot Bitcoin ETF would provide investors with exposure to Bitcoin through a traditional stock exchange.

Following the court’s decision, Bitcoin and the broader crypto market experienced gains.

The SEC and Grayscale have the option to appeal the decision within 45 days.

The court criticized the SEC’s denial as arbitrary and questioned the distinction between fraud and manipulation concerns in spot and futures markets.

Wall Street giants have also filed applications for spot Bitcoin ETFs.

Grayscale argues that if one is approved, all pending applications should be approved as well.


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– A judge has ordered a review of the Securities and Exchange Commission’s (SEC) denial of Grayscale’s spot Bitcoin ETF application.
The SEC has denied several applications for spot Bitcoin ETFs over the past decade, citing concerns about market manipulation.
The court stated that the SEC lacked a coherent explanation for the denial, calling it “unlawful” to treat similar products differently.
– Grayscale sees this decision as a significant development for investors and the Bitcoin ecosystem.
A spot Bitcoin ETF would allow investors to gain exposure to Bitcoin through a traditional stock exchange and hold the coin in a brokerage account.
– Bitcoin rallied 5% after the court’s decision was released, and the broader crypto market also saw gains.
– Both the SEC and Grayscale have 45 days to appeal the court’s decision.
En banc reviews, where all of the court’s judges weigh in during a rehearing, are rare.
– Grayscale filed a lawsuit against the SEC last June after the rejection of its Bitcoin Trust conversion.
– Bitcoin futures ETFs have been approved by the SEC, while spot-based ETFs have been denied.
The court criticized the SEC’s denial as “arbitrary and capricious” and questioned the distinction between fraud and manipulation concerns in spot and futures markets.
– Wall Street giants like BlackRock and Fidelity have filed applications for spot Bitcoin ETFs.
– Grayscale argued that if one spot Bitcoin ETF is approved, all pending applications should be approved as well.

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