The U.S. Court of Appeals has instructed the Securities and Exchange Commission (SEC) to reassess Grayscale’s Bitcoin ETF application.
The court order follows a judgment made on August 29, 2023, against the SEC’s refusal to allow Grayscale’s Bitcoin Trust (GBTC) to convert into a Bitcoin ETF.
Grayscale argued that the SEC’s decision was “arbitrary and capricious,” considering the acceptance of similarly structured Bitcoin futures ETF products.
The SEC had 45 days to appeal the judgment but remained silent as the deadline passed earlier this month, prompting a court order for the reassessment of Grayscale’s application.
Despite the order, the SEC can still reject the application. However, to do so, it must provide a new reason not connected to its previous justification that the futures Bitcoin market is not closely related to the spot market.
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