Court Backs Grayscale: SEC To Reassess Spot Bitcoin ETF Application After DC Circuit Ruling

The U.S. Court of Appeals for the D.C. Circuit confirmed Grayscale Investments' ruling, mandating the Securities and Exchange Commission (SEC) to reassess the asset management company's application for a spot Bitcoin BTC/USD ETF.

This decision aligns with the court's judgment from Aug. 29, 2023, offering renewed hope for Grayscale's ambitions.

The broader financial community is keenly observing these developments, especially as discussions about digital assets gain traction. This narrative will likely be a focal point at Benzinga's Future of Digital Assets conference on Nov. 14, which aims to foster a deeper understanding and collaboration in the digital asset domain.

Grayscale's latest move is part of its strategic push to transition the Grayscale Bitcoin Trust into a spot Bitcoin ETF.

The decision to resubmit the registration document was influenced by the D.C. Circuit Court's previous recommendation, urging the SEC to reconsider Grayscale's proposal.

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In a proactive response, Grayscale recently unveiled an S-3 filing, a streamlined version of the conventional S-1 filing, typically required for new securities in the U.S. before they secure a listing on a national exchange.

This initiative underscores Grayscale's determination to stay at the forefront, even as prominent players like BlackRock Inc. BLK and Fidelity are in the race to secure the SEC's approval for their spot Bitcoin ETFs.

Grayscale's choice to use Form S-3 stems from its shares being registered under the Securities Exchange Act of 1934 since January 2020, fulfilling the necessary criteria for the form.

The company has expressed its intent to list its shares on NYSE Arca under the ticker symbol GBTC.

Their objective is to continually issue these shares following NYSE Arca's application approval on Form 19b-4 and the subsequent validation of form S-3 for share registration, as outlined by Grayscale.

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