On Tuesday, The District of Columbia Court of Appeals ruled that the SEC was wrong in denying Grayscale Capital the right to create a Bitcoin Spot ETF. This is a major victory for the crypto industry, which has faced regulatory head winds and legal unclarity in the U.S.
While this does not ensure that a spot Bitcoin ETF will be approved, it increases the probability that one will be.
JUST IN: 🇺🇸 US Court paves way for first Spot #Bitcoin ETF after Grayscale wins lawsuit against SEC, Bloomberg reports. pic.twitter.com/SmmA3szHpT
— Watcher.Guru (@WatcherGuru) August 29, 2023
The price of Bitcoin jumped on the news that Grayscale was delivered a victory in court, as investors recognized that the approval of multiple Bitcoin Spot ETFs opens the door for billions of investor dollars to enter the market place.
A spot ETF gives investors who are not allowed, due to current regulation, to hold Bitcoin on their balance sheets.
Current accounting standards are also not in alignment with cryptocurrency holdings, and makes it much more difficult for large corporations and institutions to gain exposure to the asset class.
JUST IN: The Court ruled against the SEC's rejection of a Bitcoin ETF, saying: "The denial of Grayscale's proposal was arbitrary and capricious...because the commission failed to explain its different treatment for similar products." pic.twitter.com/rQIMMstlyu
— Bitcoin Archive (@BTC_Archive) August 29, 2023
The crypto industry is looking to rebound from a disastrous 2022. In 2023, regulatory clarity such as approval of a Bitcoin ETF are significant milestones.
Moving toward the Bitcoin halving in 2024, the crypto landscape is bound to experience many more milestones and set backs as the industry continues to develop.
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