The court’s mandate follows the initial ruling on August 29 when the court told the SEC that the rejection of Grayscale’s spot Bitcoin ETF application was arbitrary.
The US Court of Appeal has issued its ruling concerning the review of Grayscale Investments’ application for a spot Bitcoin ETF that was initially rejected by the US Securities and Exchange Commission (SEC).
This new order follows the initial judgement on August 29.
Court reviews Grayscale’s ETF bid
In an October 23 filing at Court of Appeals for the District of Columbia Circuit, the court reinforced Grayscale argument that its proposed spot Bitcoin ETF application mirrors pre-approved Bitcoin futures ETFs that the SEC has previously granted.
“In accordance with the judgment of August 29, 2023… this constitutes the formal mandate of this court,“ wrote Court of Appeals Clerk Mark Langer in a Monday filing.
The court’s mandate follows the initial ruling on August 29 when the court told the SEC that the rejection of Grayscale’s spot Bitcoin ETF application was arbitrary.
Grayscale Investments had submitted a new filing following the SEC non-dispute of the August ruling till October 13. Grayscale submitted an application seeking to transform its GBTC fund into an ETF investment vehicle. The company adopted an S-3 filing, deviating from the S-1 filing.
Read more: Grayscale submits second application for ETH futures ETF
Arguments and counters
Although the SEC retains the discretion to reject the application, it would have to come up with a fresh defense unrelated to its previous one—namely, that the futures Bitcoin market is not sufficiently linked to the spot market. In the event that the government decides to follow a similar route once more, Bitwise and other Bitcoin ETF applicants have already presented a long list of counterarguments.
In order to list shares of its Bitcoin Trust on the New York Stock Exchange Arca under the ticker symbol GBTC, Grayscale filed a registration statement with the SEC on October 19. Grayscale’s application is pending alongside applications from notable firms like BlackRock, ARK Investment, and Valkyrie.
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