In a new development in the ongoing push for a bitcoin exchange-traded fund (ETF), crypto asset manager Grayscale has won its legal battle against the Securities and Exchange Commission (SEC).
On Wednesday, the US Court of Appeals ruled in favor of Grayscale, stating that the SEC must review its previous rejection of the firm’s application to convert its Bitcoin Trust into an ETF. The court vacated the rejection, ordering the agency to reevaluate the decision.
Also read: Crypto Asset Manager Grayscale Wins Lawsuit Against the SEC
Grayscale’s victory could open the door for Bitcoin ETFs
This ruling opens the door for the creation of the first bitcoin ETF, analysts said in a new report from broker Bernstein. While it does not immediately greenlight Grayscale’s GBTC product to become an ETF, it puts pressure on the SEC to approve one of the many proposed bitcoin ETF applications currently pending review.
Analysts predict likely approval dates could start as soon as next week and continue into early 2024 as applications go through the multi-step SEC review process.
The possibility of SEC-approved bitcoin ETFs has been a hot topic in crypto for years. Proponents argue an ETF would allow more mainstream investors to gain exposure to bitcoin through traditional investment accounts.
However, the SEC has consistently rejected applications up until this point, citing concerns about volatility and the potential for manipulation. Wednesday’s court ruling signals a shift in the prolonged struggle for regulatory approval.