Grayscale Investments is urging the U.S. Securities and Exchange Commission (SEC) to promptly approve its proposed exchange-traded fund (ETF Exchange-Traded Fund (ETF) An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e An exchange-traded fund (ETF) is a collection of a mixture assets, i.e. stocks, commodities, bonds, or cryptocurrencies that tracks an index or underlying portfolio of investments.Of note, an ETF functions an arbitrage mechanism that is designed to keep it trading close to its net asset value. Most tradable ETFs track a specific index. This most commonly mirrors a stock or bond index. The popularity of ETFs has grown in recent years and are seen as an attractive investment due to its low cost, e Read this Term) that would track bitcoin. This call for approval follows a recent legal victory for Grayscale against the SEC.

Legal Victory Spurs Grayscale's Push for SEC Approval of Bitcoin ETF

In the legal case, a three-judge panel of the District of Columbia Court of Appeals ruled that the SEC had made a mistake in rejecting Grayscale's proposed bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ETF without providing a clear explanation for its decision. This ruling prompted Grayscale to push for the SEC to review and approve its ETF application.

"We hope you will agree that the best use of resources now is for the (SEC) to issue an order approving" the product, Grayscale's law firm DavisPolk wrote in a letter which was filed with the SEC on Tuesday.

A spot bitcoin ETF would allow investors to gain exposure to bitcoin's price movements without actually owning the cryptocurrency. The SEC has previously denied all spot bitcoin ETF applications, citing concerns about the protection of investors from potential market manipulation.

However, Grayscale argued that the same market surveillance arrangement used for approved bitcoin futures ETFs should be sufficient for its spot ETF since both products rely on bitcoin's underlying price. The appeals court supported Grayscale's argument by ruling that the SEC's denial of Grayscale's application was arbitrary, as it failed to explain why the two arrangements were materially different.

SEC's Historical Rejections and Renewed Industry Hope

Finance Magnates reported earlier that the possibility of the United States getting its first spot Bitcoin (BTC) exchange-traded fund (ETF) has been a topic of interest in the crypto industry. In recent years, various companies have applied for a spot BTC ETF with the SEC, but all applications have been rejected due to concerns about fraud and market manipulation.

However, there has been renewed hope in the crypto industry that such an ETF might gain approval. In June, BlackRock, the world's largest asset manager, submitted an application for a BTC ETF, which subsequently led to other companies in the sector submitting similar proposals.

The recent order from the appellate court has raised the prospect of a spot BTC ETF becoming a reality in the United States. Still, it's crucial to note that this order simply instructs the SEC to review its decision regarding Grayscale's ETF proposal. There remains a possibility that the SEC could find other grounds for rejecting Grayscale's application, so the outcome is not guaranteed at this point. The industry will continue to watch closely for developments in the SEC's review process.

"If any other reason could be offered in attempting to differentiate" the two types of products "we are confident that it would have surfaced by now," DavisPolk wrote.