Are bitcoin ETFs coming? Here’s what Grayscale’s court win means for the crypto industry

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A U.S. federal court on Tuesday ordered the Securities and Exchange Commission to vacate its rejection of Grayscale Investments’ application to convert its...

A U.S. federal court on Tuesday ordered the Securities and Exchange Commission to vacate its rejection of Grayscale Investments’ application to convert its Bitcoin Trust product into an exchange-traded fund and the crypto industry is celebrating.

Bitcoin BTCUSD, +7.27% rallied more than 7% over the past 24 hours to as high as $28,127 on Tuesday, according to CoinDesk data. The crypto is up over 57% so far this year, but is still down almost 60% from its all-time high in 2021. A number of asset managers, such as BlackRock, Fidelity, WisdomTree, VanEck, Invesco, Ark Invest and 21 Shares have filed applications for spot bitcoin ETFs, pending the SEC’s approval. Several of them face deadlines before the Labor Day U.S. holiday weekend.

The court order doesn’t require the SEC to immediately approve Grayscale’s application, but to review the application again. It is possible the SEC could find another rationale for rejecting it.In July, crypto bulls were excited that a federal judge ruled XRP, a token associated with Ripple Labs, isn’t a security when sold to the public in on digital-asset exchanges. The SEC later sought to appeal the ruling.

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Coinbase shares jump 14% amid market revelry over Grayscale winCoinbase shares surged on the expectation that spot bitcoin ETFs will become a reality, which would be a boon for the company.
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