A spot bitcoin ETF would give investors exposure to the world's largest cryptocurrency by market capitalization without having to own it.
The SEC has denied all spot bitcoin ETF applications, including Grayscale's, on the grounds applicants have not shown they can protect investors from market manipulation.
The appeals court ruled that the SEC arbitrarily denied Grayscale's application because it never explained why the two arrangements were materially different.
The appeals court is expected to issue a mandate specifying how its decision should be executed, which will likely include instructing the SEC to revisit Grayscale's application.
Several other asset managers, including BlackRock (BLK.N), Fidelity and Invesco, have similar filings pending with the SEC for a spot bitcoin ETF.
Persons:
Jim Bourg, Grayscale's, Chris Prentice, Hannah Lang, Michelle Price, Rod Nickel
Organizations:
U.S . Securities, Exchange Commission, SEC, REUTERS, Columbia, BlackRock, Fidelity, Thomson
Locations:
Washington