SEC loses battle to Grayscale: Bitcoin ETF closing in?

While the SEC is waging an anti-crypto war, the US regulator has just experienced a failure against Grayscale regarding the Bitcoin ETF. The federal court ruled today approving Grayscale’s request for review. By ordering the cancellation of the order of the SEC, justice decides in favor of the giant of the American investment. This decision could pave the way for the approval of the Bitcoin ETF.

Request for review granted for Grayscale, a boon for bitcoin

Last July, Grayscale sued the SEC for rejecting its 2022 spot Bitcoin ETF application. Then, the District of Columbia court ruled yesterday, in favor of Grayscale finding that the SEC was abusive. He therefore orders that Grayscale US’s request for review be granted. But also, that the SEC order be rescinded. The ruling forces the Commission to reconsider its rejection of the request to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.

This judge’s decision marks Grayscale’s victory against the SEC. The US regulator wrongly rejected Grayscale’s request to list an ETF that tracks the price of Bitcoin. The crypto community is following this case closely, trying for years to convince the SEC to approve a Bitcoin ETF.

The Bitcoin ETF is about to be approved

This news suggests that the Bitcoin ETF could be validated. This will allow investors to gain exposure to Bitcoin without having to own it. Faced with the race for ETFs that is raging in the financial sector, the action of Grayscale marks a decisive step. As a reminder, Grayscale had already sought ETF approval from the SEC in October 2021.

The SEC is concerned, however, that this type of asset like bitcoin is vulnerable to manipulation. However, former SEC Chairman Jay Clayton claimed that the BTC ETF could be approved. He explains that this would be possible if there are appropriate regulatory safeguards, similar to those in the futures market.

Faced with this ” SEC defeat“, the price of bitcoin (BTC) climbed 4.1% in one hour.