A federal court of the United States has passed a judgment on the Securities and Exchange Commission of the US. The judgment says that the commission should have approved an application from Grayscale Investments. The Federal Appeals Court delivered this Landmark decision on Tuesday, the 29th of August, 2023.
A Complete Victory
This decision is a victory for various reasons. Grayscale Investments, an asset manager, could pave the way for a product that is first of its kind.
The landmark judgment was delivered by the District of Columbia Court of Appeals in Washington.
SEC’s Denial Was Arbitrary
The judges of this Court have said that the denial of Grayscale’s proposal was arbitrary in nature. The Securities and Exchange Council showed differential treatment toward Bitcoin future ETFs and spot bitcoin ETFs. However, the SEC did not give any proper explanation for it.
The value of Bitcoin was up by 4.71%, making it the world’s largest cryptocurrency. One unit of the cryptocurrency costs around $27333.
Background Of The Case
The case began in June of 2022 when the Commission rejected Grayscale’s application for a spot Bitcoin ETF. The commission denied the application because it did not meet their anti-fraud or investor protection standards.
The Federal Appeals Court’s judgment could be beneficial for Bitcoin. This new spot Bitcoin ETF will give investors an opportunity to get exposure to this digital asset. However, the user will not have to buy the Bitcoin through a retail exchange or hold the Asset in a separate Crypto wallet.
What Does Grayscale Say?
“A monumental step for American investors the Bitcoin ecosystem and all those who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper”- this is a statement delivered by the grayscale spokeswoman.
She has further added that the Grayscale Investment company will be reviewing the court ruling. The legal advisors of the company will review the Court’s decision and take the next steps with the SEC.