Crypto asset manager Grayscale Investments has just beat the US Securities and Exchange Commission (SEC) in court over a lawsuit to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
The SEC had previously rejected its application on the grounds that the products were not "designed to prevent fraudulent and manipulative acts and practices." Grayscale subsequently filed suit, and the decision has been overturned.
US Circuit Court of Appeals Judge Neomi Rao has ordered that Grayscale's petition for review be granted and the SEC's order denying GBTC's listing application be vacated.
Judge Rao had earlier said that the SEC had not "offered any explanation" as to why Grayscale was wrong. However, the order does not guarantee the eventual listing of Grayscale's spot Bitcoin ETF.
Michael Sonnenshein, chief executive officer of Grayscale, has said his legal team is "actively reviewing" the court's opinion.
Jennifer Rosenthal, spokeswoman for Grayscale, has said:
"This is a monumental step forward for American investors, the bitcoin ecosystem, and all those who have been advocating for BitcoinBTC 0.0% exposure through the added protections of the ETF wrapper."