Crypto Asset Manager Grayscale Wins Lawsuit Against the SEC: A Major Victory for Bitcoin

In a landmark decision, digital asset management firm, Grayscale wins its highly anticipated case against the Securities and Exchange Commission (SEC) over the latter’s rejection of the firm’s application to convert its Bitcoin Trust into a spot Bitcoin ETF. A federal appeals court in Washington DC on Tuesday ruled the Securities and Exchange Commission was wrong to reject Grayscale’s application to convert its flagship Bitcoin trust.

This victory is a significant milestone for the crypto industry and could pave the way for broader access to Bitcoin investment opportunities. 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 appeal, signaling a potential shift in the SEC's approach to crypto ETFs.

Grayscale Investment, the world’s biggest crypto fund manager, filed an appeal against the SEC in June 2025 after the commission turned down its application to convert its GBTC fund. The SEC's rationale for rejecting Grayscale's application had been heavily scrutinized, leading to this decisive court ruling. This win for Grayscale could have ripple effects throughout the cryptocurrency market, potentially opening doors for other crypto asset managers seeking ETF approval. Stay tuned for further updates as the implications of this pivotal decision unfold.