US Court Says SEC Must Re-Review Grayscale Spot Bitcoin ETF: A Major Win

In a landmark decision, a federal appeals court has ruled that the SEC must re-review Grayscale Investments LLC\'s bid to offer a spot Bitcoin exchange-traded fund (ETF). This development marks a significant victory for Grayscale Investments and the broader cryptocurrency market.

Grayscale\'s Win: SEC Ordered to Reconsider Spot Bitcoin ETF Application

The US securities regulator was wrong to reject an application from Grayscale Investments to create a spot bitcoin exchange-traded fund, a federal appeals court declared. This ruling underscores the court\'s belief that the SEC\'s previous decision lacked sufficient justification.

Court Ruling Deemed SEC\'s Denial "Arbitrary and Capricious"

A panel of judges in the District of Columbia Court of Appeals in Washington said the securities regulator\'s denial of Grayscale\'s proposal was arbitrary and capricious. The court scrutinized the SEC\'s reasoning and found it inconsistent with previous approvals of similar investment vehicles.

Formal Mandate Issued by the U.S. Court of Appeals

The U.S. Court of Appeals for the D.C. Circuit issued a formal mandate to assert its August ruling that the Securities and Exchange Commission needs to reconsider the rejection of Grayscale Investments LLC\'s spot Bitcoin ETF application. This formalizes Grayscale Investments LLC\'s bid to offer an exchange-traded fund based on Bitcoin was formalized by a federal appeals court Monday as a massive win as it ordered the SEC to reassess its decision.

This is a developing story. Stay tuned for updates as the SEC reviews Grayscale\'s application.