The U.S. Court of Appeals for the D.C. Circuit has ruled in favor of Grayscale in its lawsuit against the Securities and Exchange Commission (SEC). The court found that the SEC had failed to adequately explain why it approved two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP.Grayscale had accused the SEC of “arbitrary and capricious treatment” in denying the Bitcoin fund’s conversion into a Bitcoin spot ETF, despite previously approving multiple futures ETF of a similar nature. The court found that the SEC had applied its two-pronged threshold for a “market of significant size” unreasonably.The court noted that Grayscale had presented evidence of a 99.9 percent correlation between bitcoin’s spot market and CME futures contract prices. The court also found the SEC’s argument that the correlation between Bitcoin’s spot and futures markets does not “provide evidence of the causal economic relationship of interest” to be “insufficient.”The SEC has now been ordered to reconsider Grayscale’s ETF application. Analysts believe the order boosts the odds of a Bitcoin spot ETF being approved in the U.S. Crypto markets surged after the ruling on Tuesday, as did the price of GBTC stock. Based on current prices, the fund’s discount against its underlying BTC has now narrowed to less than 20%.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	positive
Relevance Score	10
People	Grayscale, CME, SEC, Valkyrie, Teucrium
Companies	CME Bitcoin Futures, Grayscale, Valkyrie Bitcoin ETPs, Securities and Exchange Commission (SEC), Teucrium
Currencies	Ethereum, US Dollar, Bitcoin, goBTC
Securities	None