Have you ever dreamed of investing in Bitcoin, the world’s most popular cryptocurrency, without having to deal with the hassle of buying and storing it yourself?
Well, you might be in luck soon, thanks to a legal victory by Grayscale Investments LLC, the largest digital asset manager in the industry.
THIS JUST IN: The D.C. Circuit ruled 3-0 in favor of Grayscale and $GBTC. This is a monumental step forward for all who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper. Read the decision: https://t.co/ulAtcsad2G pic.twitter.com/BNZABvM7tw
— Grayscale (@Grayscale) August 29, 2023
Grayscale has been fighting for years to launch a Bitcoin ETF, or exchange-traded fund, which would allow everyday investors to buy and sell shares that track the spot price of Bitcoin.
This would make it easier and cheaper to access the crypto market, and potentially attract billions of dollars from retail investors who want to join the Bitcoin revolution.
But there was one big obstacle: the US Securities and Exchange Commission (SEC), the watchdog of the financial markets.
The SEC has been reluctant to approve any Bitcoin ETFs based on spot prices, arguing that they are too risky and prone to manipulation.
Instead, the SEC has only approved crypto ETFs based on futures contracts, which are more regulated and secure, but also more expensive and complex.
That’s why Grayscale’s legal victory is such a big deal. The company won a case against the SEC in a three-judge appeals panel in Washington, which ruled that the SEC had no authority to block Grayscale’s Bitcoin ETF application.
The panel said that the SEC had failed to show that spot Bitcoin prices were unreliable or fraudulent, and that Grayscale had met all the requirements for launching an ETF.
This is a major breakthrough for Bitcoin, as supporters say it would unleash a flood of retail money into the crypto space, boosting its adoption and legitimacy.
It also challenges the authority of SEC Chair Gary Gensler, who has been trying to tighten regulations on the crypto industry.
Investors reacted positively to the news. The Grayscale Bitcoin Trust, which is currently the closest thing to a Bitcoin ETF, soared by up to 21%, and Bitcoin jumped by up to 8.3%.
The ruling could also inspire other crypto companies to pursue their own ETF applications, creating more competition and innovation in the market.
However, the battle is not over yet.
The SEC still has the option to challenge the decision, either by appealing to the full DC Circuit Court of Appeals, or the US Supreme Court.
The agency is reviewing the ruling and has not commented on its next steps. Grayscale is also waiting for final approval from the SEC before it can launch its Bitcoin ETF.
So, keep your eyes peeled for more updates on this exciting development. If Grayscale succeeds in launching its Bitcoin ETF, it could be a game-changer for the crypto industry.