Grayscale wins lawsuit against the SEC

Grayscale SEC lawsuit

Bitcoin spot ETF approval

Crypto market rally prediction

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Published on

Oct 14, 2023

Written September 03rd, 2023

Grayscale Investments, a digital asset investment firm, has won a lawsuit against the U.S. Securities and Exchange Commission (SEC) in regards to its bitcoin spot ETF application. The ruling could lead to Grayscale’s GBTC converting into a bitcoin ETF, which would allow redemptions.

Grayscale is a digital asset investment firm which aims to provide products and services, like its Grayscale Bitcoin Trust (GBTC) to institutional and individual investors. The company was founded in 2014 and is one of the world’s largest digital asset currency managers. It currently owns 3.4% of outstanding bitcoin, “worth tens of billions of dollars,” according to a recent legal filing.

Grayscale was making headlines this week after the D.C. Circuit Court of Appeals ruled in favor of Grayscale in a lawsuit against the U.S. Securities and Exchange Commission (SEC) on the matter of a bitcoin ETF. This ruling is in response to the SEC denying Grayscale’s application to convert its GBTC product into a bitcoin spot ETF in June 2022.

The ruling could further the possibility of an approved spot BTC ETF product in the crypto ecosystem, and pave the way for other firms like BlackRock and Fidelity that have also filed applications for bitcoin spot ETFs.

What does this mean for the crypto market?

Many crypto experts agree that the approval of a spot Bitcoin ETF could spark a huge rally in crypto, and massive price increase to Bitcoin. According to ARK CEO Cathie Wood, she has predicted that the SEC “will approve more than one at once” if it approves any. In a recent interview, Wood stated that the SEC would likely delay approval until March 2024, just before the next bitcoin halving. This delay could drive a price increase based on the infamous bitcoin halving cycle. “If this one gets approved … then all of the other ones get approved in March, right before the halving event,” “If that happens, then … $100,000 bitcoin by the halving can definitely come true.”