BTC Explodes $1.5K as US Court Rules in Favor of Grayscale in Bitcoin ETF Case Against SEC

The US Court of Appeals for the DC Circuit overturned the country’s securities regulator’s rejection to review Grayscale’s application to turn its flagship fund into a spot Bitcoin ETF.

Recall that the asset manager sued the Securities and Exchange Commission earlier this year.

• The Tuesday ruling ordered the SEC to “vacate” its decision to refute the conversion of the Grayscale Bitcoin Trust into a spot exchange-traded fund that tracks the performance of BTC.
• Grayscale’s CEO took it to X to highlight the court’s ruling.

🚨 JUST IN 🚨

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…

— Sonnenshein (@Sonnenshein) August 29, 2023

• This means that the agency must now review the rejection, which could lead to the approval of the first spot Bitcoin ETF in the States.
• Grayscale filed to turn GBTC into a spot BTC ETF back in October 2021, but the Commission rejected its application shortly after, claiming that the company has failed to ensure how it will prevent market manipulation.
• Grayscale responded quickly by suing the regulator, which many believed had a great chance of succeeding.
• Today’s ruling had a massive impact on BTC’s price as the asset exploded by over $1,500 in minutes to register a new multi-week high at over $27,500.
• This is the SEC’s second major court loss against a crypto company in the past few months after the defeat suffered in its legal battle versus Ripple.