The US Securities and Exchange Commission (SEC) will not appeal a recent court ruling that found it was wrong to reject Grayscale Investments’ application to create a spot bitcoin exchange-traded fund (ETF). The court ruling stated that the SEC was arbitrary in denying Grayscale’s application without explaining why it was different from other approved surveillance agreements. This decision paves the way for the SEC to review Grayscale’s application. The SEC has previously denied all spot bitcoin ETF applications due to concerns over investor protection from market manipulation. Grayscale argued that its proposed ETF should be approved based on the same surveillance agreements used for bitcoin futures-based ETFs. The appeals court is expected to issue a mandate instructing the SEC to revisit Grayscale’s application.
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