Crypto asset manager Grayscale has scored a major victory against the United States Securities and Exchange Commission in its efforts to convert its over-the-counter GrBitcoin Trust (GBTC)GBTC application into a listed Bitcoin ETF. Previously, the SEC rejected its GBTC application on grounds that the products were not “designed to prevent fraudulent and manipulative acts and practices.” Grayscale subsequently sued, and the decision has been overturned.
According to August 29 court filings, U.S. Court of Appeals Circuit Judge Neomi Rao ordered Grayscale's petition for review be granted and the SEC's order to deny the GBTC listing application to be vacated. Previously, Judge Rao said that the SEC did not "offer any explanation" as to why Grayscale was in the wrong. However, the order does not guarantee the eventual listing of a Grayscale spot Bitcoin ETF.