Per a document filed with the US District of Columbia Circuit, asset manager Grayscale was granted its petition for review of their Bitcoin Trust. The Circuit’s Judge Rao approved the asset manager’s petition to transform their financial product into a Bitcoin Exchange Traded Funds.

According to the court ruling, Grayscale might finally be able to turn their Grayscale Bitcoin Trust (GBTC) into a Bitcoin Exchange Traded Fund (ETF). The Commission denied Grayscale’s petition, claiming that the cryptocurrency market is susceptible to manipulation and could endanger customers.

Thus, the asset manager filed a lawsuit against the Commission, which led to today’s decision. The CEO of Grayscale, Michael Sonnenshein, celebrated the decision via his X handle:

The D.C. Circuit ruled in favor of Grayscale in our lawsuit challenging the SEC’s decision to deny $GBTC’s conversion to an ETF! Thank you to everyone who has been on this journey with us, especially our investors. We are grateful for your support and encouragement.

Currently, the legal team representing Grayscale is evaluating their next options. Sonnenshein stated that further updates would be made via the asset manager’s official social media channels as soon as possible.

On the other hand, Bloomberg Intelligence’s ETF experts James Seyffart and Eric Balchunas commented on the court ruling. Seyffart wrote the following confirming the asset manager’s win over the Commissioner:

There it is, Grayscale wins their lawsuit against the SEC. DC Circuit court of appeals is vacating SEC’s denial of $GBTC’s conversion into an ETF.

While today’s decision is important, the asset manager still needs to face off with the Commission. This government agency still can deny or approve ETFs in the United States.

The judge behind the decision publicly stated his opinion regarding the case, calling out the SEC for denying GBTC to turn into a Bitcoin ETF. The judge reprimanded the SEC for not providing regulatory clarity to the crypto industry. The judge stated:

It is a fundamental principal of administrative law that agencies must treat like cases alike. The Securities and Exchange Commission recently approved the trading of two bitcoin futures on national exchanges but denied approval of Grayscale’s bitcoin fund. Petitioning review of the Commission’s denial order, Grayscale maintains its proposed bitcoin exchange-traded products and should have been approved to trade on NYSE Arca. We agreed (…)

 Chart from Tradingview

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