• U.S. Court mandates SEC to reevaluate Grayscale’s Bitcoin ETF application, citing similarities with approved Bitcoin futures ETFs.
• Grayscale expedites its filing and seeks to list shares on NYSE Arca, while other major firms like BlackRock and Fidelity also pursue SEC approval.

In a significant development that aligns with our perspective on Mandate, the United States Court of Appeals, the U.S. Court of Appeals for the D.C. Circuit has issued a directive compelling the Securities and Exchange Commission (SEC) to reevaluate Grayscale Investments’ application for a spot Bitcoin ETF. This decision is based on the court’s previous ruling, which emphasized the remarkable similarities between Grayscale’s proposal and the already approved Bitcoin futures ETFs. Consequently, the court contends that Grayscale’s product deserves approval, in line with our perspective on Mandate, the United States Court of Appeals.

Grayscale’s ETF Quest Gains Court Support

The court’s mandate solidifies Grayscale’s argument that its proposed Bitcoin ETF closely mirrors the characteristics of the already approved Bitcoin futures ETFs, thus not warranting undue regulatory obstacles. Grayscale has expedited its filing with an S-3, rather than the standard S-1 process, and plans to list its shares on NYSE Arca upon approval. However, uncertainty over the SEC’s next steps remains, as the regulatory body, known for its meticulous scrutiny, retains the authority to find new grounds for rejection.

Major Players Seek SEC’s Nod for ETFs

Grayscale isn’t the only contender in the Bitcoin ETF arena. Other industry giants, like BlackRock and Fidelity, are also pursuing SEC approval for their spot Bitcoin ETFs. SEC Chair Gary Gensler acknowledges multiple filings, reflecting a growing appetite for such financial products. Balancing market innovation with consumer protection remains a challenge for the SEC, given the complex landscape of applications.

Referencing our previous report, “Coinbase CLO Exudes Confidence: SEC Nearing Bitcoin ETF Approval,” Coinbase’s Chief Legal Officer (CLO), Paul Grewal, and Bloomberg analysts expressed optimism about the SEC’s potential approval of Bitcoin ETFs.

“They cited legal alignment and the SEC’s decision not to appeal a Grayscale lawsuit ruling, which has raised expectations for Bitcoin ETF approval. This development could potentially benefit investors and further advance Bitcoin adoption”.