Court Clears Path for Grayscale’s Spot Bitcoin ETF Conversion

The U.S. Securities and Exchange Commission (SEC) finds itself back at the drawing board, mandated to re-evaluate its earlier rejection of Grayscale’s proposal to transition its Grayscale Bitcoin Trust (GBTC) to a spot ETF. This development emerges after the D.C. Circuit Court of Appeals stamped its authority on the matter, ruling in favor of Grayscale.

Two months prior to this formal case closure, the court had pointed out that the SEC acted without sound reason when it declined Grayscale’s $17 billion GBTC spot ETF transition. The SEC decided against challenging this preliminary ruling.

Now, the responsibility is once again on the SEC to decide on the fate of Grayscale’s application. The regulatory body could either give the green light or turn it down based on different justifications. Beyond Grayscale, the SEC is also juggling decisions regarding several spot bitcoin ETF applications from other major players, such as BlackRock, Fidelity, and Franklin Templeton.

Jennifer Rosenthal, a spokesperson for Grayscale, conveyed the firm’s commitment post the case’s resolution on Monday. She stated, “GBTC is operationally ready, and we intend to move as expeditiously as possible on behalf of our investors.” She also expressed the team’s enthusiasm about collaborating positively with the SEC throughout the conversion process.