In a landmark decision, a federal appeals court ordered the SEC to reconsider its earlier denial of Grayscale’s request to transform its current trust into an exchange-traded fund (ETF) backed by Bitcoin.
Grayscale Investments has taken a significant step forward in its efforts to create an exchange-traded fund (ETF) for Bitcoin with a recent court victory.
This development stems from the Securities and Exchange Commission’s reluctance to challenge the court’s ruling in August, which instructed the SEC to revisit the Bitcoin ETF application. Consequently, the new directive compels the SEC to undergo a thorough review of its prior denial.
Recall that back in August, Judge Neomi Rao deemed the SEC’s denial as “arbitrary and capricious,” emphasizing the regulator’s inconsistency in approving similar financial products.
Despite the SEC’s worries regarding possible restrictions on fraud detection methods within a Bitcoin-focused ETF, the judge reached this conclusion. Nevertheless, the previously rejected application will now undergo renewed scrutiny following the recent court order.
As a result, it is anticipated that the United States SEC will soon grant approval for a Bitcoin exchange-traded fund. This development is occurring against the backdrop of Bitcoin and the entire cryptocurrency market experiencing a bullish surge, with the global market cap rising to a staggering $1.18 trillion, marking a 4.33% increase in the last 24 hours.
SEC Acknowledges Grayscale’s Ethereum Trust Conversion
Simultaneously, the Securities and Exchange Commission has officially acknowledged Grayscale’s initiative to convert its Ethereum Trust into a spot Ethereum exchange-traded fund.
Established in 2019, the trust currently manages nearly $5 billion in Ethereum assets, representing approximately 2.5% of the total Ethereum in circulation.
At present, Bitcoin leads the global cryptocurrency market with a strong bullish trend. According to live data from Coinstats, Bitcoin is currently trading at $31,627, reflecting a 6.02% increase in the last 24 hours.
Furthermore, Bitcoin (BTC) boasts a 24-hour trading volume of $41,824,888,251.402 (approximately $41 billion) and a live market capitalization of $617,426,540,619.483 (equivalent to $617.4 billion). Notably, Bitcoin has a maximum supply of 21 million BTC tokens.