Grayscale Triumphs over SEC: GBTC’s Transition to Bitcoin Spot ETF Looms Near
Grayscale’s Persistent Drive
Grayscale Investments has long been ambitious about converting its Bitcoin Trust Fund, GBTC, into a “Bitcoin Spot ETF.” However, the U.S. Securities and Exchange Commission (SEC) repeatedly thwarted these aspirations. Undeterred, Grayscale legally challenged the SEC, emerging victorious on October 23rd, paving the path for the ETF’s listing.
The Court’s Ruling: Victory for Grayscale
The SEC failed to appeal within the stipulated timeframe, leading the Washington D.C. Circuit Court of Appeals to cement its final decision on October 23rd. The verdict? In Grayscale’s favor, with the SEC ordered to retract its prior denial of Grayscale’s ETF application.
Judge Neomi Rao’s Insightful Observations
In a preliminary ruling in August, Circuit Judge Neomi Rao remarked that the SEC’s rejection of Grayscale’s proposal was “arbitrary” and “capricious.” The regulatory body struggled to justify why it approved two Bitcoin futures ETP listings but dismissed Grayscale’s Bitcoin ETP. Without a coherent explanation, the SEC was found to be showing differential treatment for similar products, violating the principle of equality. Consequently, Grayscale’s request for a rehearing was granted.
SEC’s Next Steps and Grayscale’s Endeavors
Though Grayscale’s court success is undeniable, it doesn’t signify the end of their journey. The ball remains in the SEC’s court regarding the final approval. In light of this, Grayscale submitted a fresh registration statement last week, once more championing the transformation of its GBTC into a Bitcoin Spot ETF. If greenlighted, this ETF will debut on the New York Stock Exchange (NYSE) Arca, retaining “GBTC” as its ticker.
Grayscale Speaks Out
After Monday’s case conclusion, a Grayscale spokesperson stated, “The Grayscale team looks forward to continuing our constructive collaboration with the SEC. We’re operationally prepared for GBTC’s transition to an ETF and intend to act swiftly on behalf of our investors.”
Keywords: Grayscale, SEC, GBTC, Bitcoin Spot ETF, U.S. Securities and Exchange Commission, Circuit Judge Neomi Rao, NYSE, Bitcoin Trust Fund, Washington D.C. Circuit Court of Appeals
