Bitcoin

<h3 id="grayscale-s-notable-win-against-the-sec">Grayscale’s Notable Win Against the SEC</h3><p>In a groundbreaking decision, the federal appeals court ruled in <a href="https://storage.courtlistener.com/recap/gov.uscourts.cadc.38827/gov.uscourts.cadc.38827.1208564168.0_2.pdf" rel="noopener noreferrer nofollow">favor of Grayscale Investments LLC</a> regarding the launch of a Bitcoin exchange-traded fund (ETF), defying objections from the US Securities and Exchange Commission (SEC). The ruling is expected to have significant implications for the future of cryptocurrency and its acceptance in mainstream finance.</p><h3 id="the-court-s-stance-sec-s-reasoning-flawed">The Court’s Stance: SEC’s Reasoning Flawed</h3><p>The pivotal August ruling highlighted Judge Neomi Rao’s critique of the SEC’s “arbitrary and capricious” rejection of Grayscale’s ETF proposal. Judge Rao emphasized the regulator’s inability to elucidate its approval of analogous products, contrasting its previous stance against a Bitcoin-based ETF, which it deemed vulnerable to fraud.</p><h3 id="potential-milestone-for-digital-assets">Potential Milestone for Digital Assets</h3><p>With the acceptance of such ETFs, digital-asset proponents foresee a transformative moment on the horizon. They argue that expanded access will combat skepticism surrounding the digital-asset sector, traditionally seen as a speculative, lightly-regulated space.</p><h3 id="bitcoin-s-rally-amidst-etf-expectations">Bitcoin’s Rally Amidst ETF Expectations</h3><p>Buoyed by this positive development, <a href="https://blockchainreporter.net/bitcoin-price/" rel="noopener noreferrer nofollow">Bitcoin surged past the $31,900 mark</a> for the first time since July. Such milestones underline the market&#39;s keen eye on asset managers&#39; endeavors to clinch ETF approvals.</p><h3 id="the-sec-s-stance-and-future-appeals">The SEC’s Stance and Future Appeals</h3><p>Recent times saw the SEC opting out of petitioning the appeals court to reevaluate its Grayscale verdict. As per insiders, further appeals aren’t on the cards for the regulator. This aligns with the broader sentiment of crypto enthusiasts who lauded the appellate panel’s decision, interpreting it as an opportunity for the industry to attract billions from everyday investors.</p><h3 id="grayscale-s-vision-for-its-etf">Grayscale’s Vision for Its ETF</h3><p>In anticipation of the ETF conversion, the discount on Grayscale Bitcoin Trust has seen significant narrowing. Grayscale emphasizes that an ETF transformation would facilitate the effortless creation and redemption of shares, addressing the limitations of the current closed-end structure.</p><h3 id="the-sec-and-grayscale-s-spot-bitcoin-etf">The SEC and Grayscale’s Spot Bitcoin ETF</h3><p>The U.S. Court of Appeals for the D.C. Circuit has mandated the SEC to reevaluate Grayscale’s Spot Bitcoin ETF application. This comes in the backdrop of Grayscale’s argument that its proposed ETF closely mirrors approved bitcoin futures ETFs, thus sharing an equivalent potential for identifying market malpractices.</p><h3 id="future-of-spot-bitcoin-etfs">Future of Spot Bitcoin ETFs</h3><p>Several financial giants, including <a href="https://www.blackrock.com/" rel="noopener noreferrer nofollow">BlackRock</a> and Fidelity, are vying for the SEC’s green light for spot bitcoin ETFs. These approvals could be pivotal in seamlessly integrating crypto into traditional banking transactions.</p><h3 id="in-conclusion">In Conclusion</h3><p>The ongoing tussle between Grayscale, the SEC, and the court’s mandate holds profound implications for the crypto industry. As the dust settles, the final decision could either propel cryptocurrencies further into mainstream finance or necessitate a reevaluation of their place in the financial landscape.</p>

Grayscale Triumphs in Pursuit of a Bitcoin ETF: A Look at the Court’s Mandate and Its Implications

Table of Contents

BlockchainReporter

Other articles published on Oct 23, 2023

NFT Trading Volume on Ethereum Shot Up +124% in Just a Week, Hitting $142M: What Comes Next?

Thailand’s Digital Wallet Initiative Postponement Debate Heats Up

Frax Partnered With RWA Lending Protocol TProtocol, Launched Curve Liquidity Mining

How blockchain security experts investigate hacks | Interview

Pepe and Wall Street Memes Suffer Losses As NuggetRush Presale Starts Strong

SOL Soars 38% in a Week: Will Solana’s Bullish Run Continue?

Join our free newsletter for daily crypto updates!