The Securities and Exchange Commission has decided not to appeal a recent court loss regarding the Grayscale itcoin-stays-strong-as-ethereum-falters-amid-gaza-unrest">itcoin">Bitcoin Trust. This choice boosts the likelihood that Grayscale’s bitcoin exchange-traded fund (ETF) application could be approved.
In August, a court ruled the SEC must revisit its previous rejection of allowing Grayscale to convert its bitcoin trust into an ETF after calling the decision “arbitrary.” The SEC had until Friday night to appeal but declined to do so based on reports.
The decision came as a surprise to many expecting the agency to challenge the ruling. itcoin">Bitcoin’s price rose above $27,000 on the news, as an approved bitcoin ETF would enable mainstream investment access.
While the SEC still has authority to deny Grayscale’s application on other grounds, the firm is now in a much better position given the court win. Other major asset managers like BlackRock and Fidelity also await bitcoin ETF decisions from the SEC.
By not appealing, the SEC boosts the chances of finally approving a bitcoin ETF after years of rejections. The move signals potential openness to regulated crypto investment vehicles amidst growing industry pressure.
