Grayscale SEC win brings spot GBTC ETF approval a step closer
Grayscale has scored a win in its case against the Securities and Exchange Commission (SEC) concerning the conversion of its Grayscale Bitcoin Trust (GBTC) product into an exchange-traded fund (ETF). The judge in the case specifically found that the “denial of Grayscale ’s proposal was arbitrary and capricious because the commission failed to explain its different treatment of similar products.” The SEC has previously approved futures-based bitcoin ETFs but has yet to approve any spot-based bitcoin ETFs. Grayscale filed this lawsuit after the SEC originally denied the conversion of its GBTC product to an ETF. The SEC’s denials of spot bitcoin ETFs and approval of futures-based ETFs have frequently appeared to hinge on a belief that the futures were more resistant to manipulation . The judge specifically detailed how “Grayscale presented uncontested evidence that there is a 99.9% correlation between bitcoin’s spot market and CME futures contract ...