A federal appellate court has ordered the SEC to review its previous rejection of Grayscale’s bid to convert its existing trust into a Bitcoin-based ETF.
In a recent development, Grayscale Investment has secured a crucial order from an appeal court regarding its move to establish a Bitcoin exchange-traded fund (ETF).
This move comes following the refusal of the Securities and Exchange Commission to appeal the court’s decision in August which ordered the SEC to review the Bitcoin ETF application. Consequently, the new mandate now requires the SEC to review its previous rejection.
Recall that back in August, Judge Neomi Rao ruled that the SEC’s denial was “arbitrary and capricious,” pointing out that the watchdog is inconsistent in approving other similar financial products.
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The Judge made this decision despite the SEC’s worry over a potential limitation in fraud detection mechanism within a Bitcoin-oriented ETF. However, the previously rejected application will now undergo a fresh review following the recent court mandate.
As a result, the United States SEC is expected to approve a Bitcoin exchange-traded fund soon. Bitcoin and the entire crypto market are currently experiencing a bullish momentum with the global market cap rising as much as 1.18 trillion signifying a 4.33% increase in the last 24 hours.
SEC acknowledges Grayscale’s spot Ethereum ETF filing
Meanwhile, the Securities and Exchange Commission has acknowledged Grayscale’s move to convert its Ethereum Trust into a spot Ethereum exchange-traded fund.
SEC has acknowledged Grayscale's spot ether ETF filing…
This would be conversion of $ETHE into ETF. pic.twitter.com/JMmutgbakZ
— Nate Geraci (@NateGeraci) October 23, 2023
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The trust was established in 2019 and at press time, it manages close to $5 billion in Ethereum assets. This represents about 2.5% of the total Ethereum in circulation.
Bitcoin (BTC) price today
Bitcoin price. Source: Coinstats
Bitcoin is currently leading the global crypto market in a bullish momentum. According to live data from Coinstats, Bitcoin is currently changing hands at $31,627. The price is up 6.02% in the last 24 hours.
What’s more, Bitcoin (BTC) has a 24-hour trading volume of $41,824,888,251.402 ($41 billion) with a live market cap of $617,426,540,619.483 ($617.4 billion). Ultimately, Bitcoin has a maximum supply of 21 million BTC tokens.
Read more:
- Reasons Why the Crypto Market is Up Today
- Japanese Exchange BitTrade Adds Dogecoin and Shiba Inu to List of Offerings
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.