Grayscale Court Victory Over SEC in Spot Bitcoin ETF Case Made Final

The D.C. Circuit Court of Appeals closed the books on a dispute between the U.S. Securities and Exchange Commission (SEC) and Grayscale, with a final ruling that effectively orders the agency to scrap its rejection of the asset manager’s spot bitcoin ETF application.

This formal closure of the case on Monday essentially solidifies the court’s initial ruling two months ago that the SEC was “arbitrary and capricious” in its decision to reject Grayscale’s attempt to convert its roughly $17 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF.

The SEC chose not to appeal that ruling, making today’s action a formality.

The ball now returns to the SEC’s court, where the agency could choose to approve Grayscale’s application or perhaps reject it on other grounds. The SEC is also in the process of making decisions on numerous other spot bitcoin ETF applications, including those from asset management giants BlackRock, Fidelity and Franklin Templeton.

“Grayscale remains operationally ready to convert GBTC to an ETF, and on behalf of GBTC’s investors, we look forward to working collaboratively and expeditiously with the SEC on these matters,” spokeswoman Jennifer Rosenthal said in a statement prior to this final ruling.

Read more: Grayscale ETF Case’s Final Word Coming in Federal Court as SEC Loss Formalized

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