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CNN
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Crypto assets soared in value on Tuesday after a US court cleared the way for the country's first Bitcoin exchange-traded fund.
The ruling is a landmark moment for crypto investors and a setback for the Securities and Exchange Commission, which has sought to rein in the digital asset industry.
A three-judge panel of the DC Court of Appeals Reversed the SEC's decision to deny Grayscale Investments permission to launch a Bitcoin-focused ETF.The panel said the regulator Failed to adequately explain the reason for the rejection Company application form.
“The rejection of Grayscale's proposal was arbitrary and capricious because the Commission failed to explain the different treatment of similar products,” Judge Neomi Rao said.
An SEC spokesperson said Tuesday that the agency is “reviewing the court's decision to determine next steps.”
Major cryptocurrency tokens soared on the news. Bitcoin's price has been particularly volatile in recent weeks, rising 7% to nearly $28,000. Coinbase (COIN), the largest publicly traded cryptocurrency exchange in the US, rose 15%.
The Bitcoin fund at the center of the incident, Grayscale Bitcoin Trust (GBTC), rose 17%.
Grayscale had argued that the proposal was materially similar to other Bitcoin investment products required by the SEC. already approved. Two other Bitcoin products from cryptocurrency companies Valkyrie and Teucrium are Hold futures contracts on the Chicago Mercantile Exchange. grayscale had The judges said they presented “incontrovertible evidence” that the underlying asset, Bitcoin, and Bitcoin futures are virtually identical.
The ruling opens the door to an investment product that investors have long sought.
Possible with Spot Bitcoin ETF Traditional Investors can have exposure to digital assets without actually owning them.
“This is history for U.S. investors, the Bitcoin ecosystem, and everyone who has advocated for Bitcoin exposure through the added protection of an ETF wrapper,” Grayscale CEO Michael Sonnenschein said in a statement. It's a milestone.” “It is very exciting to be one step closer to realizing a U.S. spot Bitcoin ETF.”
Grayscale is one of several companies that have applied for a spot Bitcoin ETF. Earlier this year, BlackRock, Fidelity, Invesco and others sought permission to launch their own Bitcoin funds.
Bitcoin is up about 65% this year, but is still far from its late 2021 highs of over $68,000.
