Breaking: Grayscale wins SEC lawsuit
Crypto asset manager Grayscale Bitcoin Trust (GBTC) has scored a major victory against the United States Securities and Exchange Commission (SEC) in its efforts to convert its over-the-counter GBTC application into a listed Bitcoin ETF.
According to August 29 court filings, U.S. Court of Appeals Circuit Judge Neomi Rao ordered Grayscale's petition for review be granted and the SEC's order to deny the GBTC listing application to be vacated. Previously, Judge Rao said that the SEC did not "offer any explanation" as to why Grayscale was in the wrong. However, the order does not guarantee the eventual listing of a Grayscale spot Bitcoin ETF.
Michael Sonnenshein, CEO of Grayscale investments, said on Twitter that its legal team is "actively reviewing" the court opinion.
JUST IN
The D.C. Circuit ruled in favor of @Grayscale in our lawsuit challenging the SEC's decision to deny $GBTC's conversion to an ETF!
Thank you to everyone who has been on this journey with us, especially our investors. We are grateful for your support and…
On June 29, 2022, the SEC denied Grayscale's application to convert GBTC into a spot ETF. The next day, Grayscale's senior legal strategist, former U.S. Solicitor General Donald B. Verrilli Jr., filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit. At the time, Michael Sonnenshein, CEO of Grayscale, said in a statement the firm was "deeply disappointed" and "vehemently disagreed" with the SEC's decision to deny their application.
Related: SEC delays set deadlines for Bitcoin ETF approval to early 2024
Grayscale is the largest over-the-counter traded Bitcoin fund, with over $14 billion in assets under management. Earlier this year, shares of GBTC traded
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