The regulatory win by the Grayscale firm against the SEC agency confirmed that huge numbers of Bitcoin spot ETF products are ready to enter the US financial market.
Grayscale is a digital assets fund manager firm, a subsidiary of the Digital Currency Group (DCG). For one year, the financial position of DCG is not healthy because of the big downfall in the crypto market in 2021. Grayscale provides investment in Bitcoin, Ethereum, & several flagship crypto assets with the help of its bonds. For example, the company provides Bitcoin investment via Green Bitcoin Trust (GBTC).
In late 2021 the Grayscale firm applied with the United States Securities Exchange Commission (SEC) to secure regulatory approval to convert its GBTC into a Bitcoin spot ETF product so that the company can work with more transparency & fewer risk possibilities but the SEC agency rejected its application. In response, Grayscale sued the SEC body and claimed that the agency green-signalled several Bitcoin futures ETF products but rejected Bitcoin spot ETF applications without any reason.
Through the suit, the Grayscale team clarified that Bitcoin spot ETF products are safer ways of investing in Bitcoin than Bitcoin futures ETF products and both of these two types of products are the same but still the American regulator treated them in different ways.
In the latest, the federal court judge ruled in favour of Grayscale. The court judge reportedly said that the rejection of Grayscale’s Bitcoin spot ETF application by the US SEC was a wrong decision because both of the products are the same & even the SEC lawyers failed to provide facts & evidence to distinguish between these two types of products.
In short, Grayscale won the case and soon again will file for the Bitcoin spot ETF application, to swap its GBTC into Bitcoin spot ETF and also secure regulatory approval with 100% surety.
Some experts are not expecting a better move shortly by the SEC body. According to them, there are huge chance that the SEC body may plan to cease all the Bitcoin futures ETF products, to secure victory against the crypto sector despite the lose in this case.