Grayscale Wins Lawsuit Over Bitcoin ETF Conversion: US Appeals Court Orders Reevaluation by SEC

In a significant legal breakthrough, Grayscale has won a lawsuit that could potentially change the landscape of Bitcoin spot ETFs in the U.S. The U.S.

Court of Appeals has officially ordered the SEC to reevaluate its earlier decision.

SEC Ordered to Conduct Reevaluation

It has been revealed that the United States Court of Appeals has formally ordered the U.S.

Securities and Exchange Commission (SEC) to conduct a reevaluation concerning Grayscale's conversion of its investment trust 'GBTC' to a Bitcoin spot ETF.

Grayscale had initiated a legal suit against the SEC due to the regulatory body's refusal to approve their application for the conversion. Reports had earlier disclosed that a judge from the U.S. Court of Appeals acknowledged Grayscale’s request for a review on August 29, 2023.

Lack of SEC Appeal Leads to Court's Formal Order

It was reported on October 13th that the SEC had not filed an appeal by the set deadline of October 13, 2023. In light of this, the U.S. Court of Appeals has now issued a formal order based on the initial judgment.

The SEC now has to reevaluate Grayscale's application, which is why the crypto industry is viewing this development as a 'victory for Grayscale.'

Potential Outcomes and Industry Expectations

Moving forward, there are two possibilities: either the SEC approves Grayscale's application, or it declines it for some other reason.

Nevertheless, the majority of the crypto industry appears to be optimistic and hopeful for the approval.

As of now, no applications for a 'Bitcoin spot ETF' have been approved in the U.S. However, as of today, October 24th, there are reports of 'BlackRock's Bitcoin Spot ETF being listed on DTCC.'

This has heightened expectations within the industry for the early approval of a Bitcoin spot ETF.