SEC has No Plans to Contest Decision in Grayscale BTC ETF Case: Report
- As per a report, the United States SEC has no plans to contest the decision in the Grayscale lawsuit.
- A panel of judges ruled that it was wrong of the agency to reject Grayscale’s spot ETF application.
- It seems that the regulator might be open to reviewing the multitude of applications filed by ETF issuers.
- Grayscale also seeks to convert its Grayscale Ethereum Trust into a spot Ether ETF.
The United States Securities and Exchange Commission (SEC) has no plans to contest the decision made by the panel of judges in the lawsuit filed by digital asset investment firm Grayscale regarding the approval of its application to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF.
According to a report from Reuters, a source familiar with the matter stated that the regulator is not considering appealing the decision made by the District of Columbia Court of Appeals in Washington in August. Judges Sri Srinivasan, Neomi Rao, and Harry Edwards did not side with the SEC, adding that the agency had wrongfully rejected Grayscale’s application.
It is important to mention here that the Grayscale vs. SEC lawsuit was monitored by the entire digital assets sector, as the industry has been trying for over a decade to push for the approval of a Bitcoin spot exchange-traded fund (ETF).
Interestingly, the agency’s decision not to appeal the judges’ decision might mean that it is open to reviewing the multitude of applications filed by ETF issuers for a Bitcoin spot ETF.
A Bitcoin spot ETF will give investors access to spot BTC prices, unlike futures ETFs, which provide indirect exposure to the leading digital asset. The SEC has rejected multiple spot ETF applications, claiming that the issuers do not possess sufficient infrastructure to protect investors and prevent market manipulation.
A few months ago, Grayscale sued the securities regulator, claiming that certain surveillance agreements that the regulator approved to prevent fraud in bitcoin futures-based ETFs should be satisfactory in spot ETFs as both future and spot prices rely on BTC’s price. The investment noted that the agency never mentioned how or why the two were different or why futures ETFs were approved, but not a single spot ETF has been approved.
According to a previous report from BitcoinWIsdom, after securing a victory against the SEC, Grayscale sought to convert its Grayscale Ethereum Trust into a spot Ether ETF.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
