Bitcoin

In a significant court victory, Grayscale Investments has won a crucial court battle against the Securities and Exchange Commission (SEC) over its application for a spot Bitcoin exchange-traded fund (ETF). 
<h2 id="b-the-court-s-argument-b">The Court’s Argument</h2> 
The <a href="https://www.cadc.uscourts.gov/internet/opinions.nsf/32C91E3A96E9442285258A1A004FD576/$file/22-1142-2014527.pdf" rel="noopener noreferrer nofollow">court’s decision stated that the SEC failed to give an adequate basis </a>for its disparate handling of similar financial products. As a result, the court accepted Grayscale’s appeal and annulled the ruling, granting the corporation a huge success in its pursuit of a Bitcoin ETF. 
The court’s argument was anchored in the assertion that since Grayscale’s proposed ETF would operate with similar mechanisms as the already sanctioned futures-based ETFs, it should have an equivalent capability to detect and prevent fraudulent or manipulative activities in the Bitcoin and Bitcoin futures markets. 
The ruling sends a clear message that the court recognizes the equivalency between spot Bitcoin ETFs and their futures-based counterparts.&nbsp; 
<h2 id="b-options-available-to-the-sec-b">Options Available to the SEC</h2> 
Following the court’s ruling, the SEC has a 45-day window during which it can request an en banc hearing, a rehearing involving all three judges. Should the SEC choose not to exercise this option, the court will issue a final mandate outlining the next steps in the process. 
The mandate will reveal vital information about how Grayscale’s proposal will be evaluated and whether the regulatory landscape for crypto-based ETFs will change. 
Nathan Geraci, President of The ETF Store, an advisory firm, has highlighted that the SEC might choose to force the closure of existing futures-based Bitcoin ETFs. However, Geraci noted that this option appears unlikely, especially given the <a href="https://thecoinrise.com/volatility-shares-trust-to-debut-leveraged-bitcoin-investment-vehicle/" rel="noopener noreferrer nofollow">recent approval of the Volatility Shares 2X Bitcoin Strategy ETF (BITX)</a>.&nbsp; 
<h2 id="b-court-s-opinion-a-milestone-for-the-crypto-industry-b">Court’s Opinion: A Milestone for the Crypto Industry</h2> 
Meanwhile, the court’s opinion in favor of Grayscale Investments signifies a significant milestone for the cryptocurrency industry. It underscores the notion that the market has evolved and matured to a point where it can accommodate regulated financial products based on digital assets.&nbsp; 
Recent data from CoinGecko revealed that the price of Bitcoin (BTC) experienced a sudden surge of 5.4%, <a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow">reaching a price of $27,450 following the court’s decision</a>. This sharp price increase emphasizes the crypto market’s sensitivity to regulatory developments and institutional adoption.&nbsp; 
This legal precedent also opens a pathway for companies such as <a href="https://thecoinrise.com/fidelity-investments-submits-application-for-spot-bitcoin-etf-with-sec/" rel="noopener noreferrer nofollow">Fidelity Investments to advocate for its proposals</a> while holding regulatory agencies accountable for the consistency and transparency of their decisions. 
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/grayscale-wins-court-battle-over-bitcoin-etf-approval-against-the-sec/">Grayscale Wins Court Battle Over Bitcoin ETF Approval Against the SEC</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Grayscale Wins Court Battle Over Bitcoin ETF Approval Against the SEC

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