Grayscale gets green light to launch Bitcoin ETF as SEC steps aside By Investing.com
[ad_1]
© Reuters.
In a significant move for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has decided not to contest a ruling by the DC Circuit Court of Appeals, which allows Grayscale Investments LLC to launch a Exchange-Traded Fund (ETF). The decision, announced on Friday, follows the court’s previous overturning of the SEC’s rejection of Grayscale’s plan to transform its trust into an ETF.
The court’s verdict was reached by a panel of three judges, but it was subject to potential review by a larger panel. The SEC’s decision not to oppose this ruling effectively paves the way for Grayscale’s transformation.
Grayscale has long argued that such a transition would unlock billions in investor value by enabling simplified share creation and redemption – features absent in their current closed-end structure. This existing structure has often been criticized for preventing investors from redeeming shares when prices fall, resulting in steep discounts relative to Bitcoin’s inherent value.
The introduction of the Bitcoin ETF is expected to provide investors with greater flexibility and potentially stimulate more participation in the cryptocurrency market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
[ad_2]
Source link
© Reuters.
In a significant move for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has decided not to contest a ruling by the DC Circuit Court of Appeals, which allows Grayscale Investments LLC to launch a Exchange-Traded Fund (ETF). The decision, announced on Friday, follows the court’s previous overturning of the SEC’s rejection of Grayscale’s plan to transform its trust into an ETF.
The court’s verdict was reached by a panel of three judges, but it was subject to potential review by a larger panel. The SEC’s decision not to oppose this ruling effectively paves the way for Grayscale’s transformation.
Grayscale has long argued that such a transition would unlock billions in investor value by enabling simplified share creation and redemption – features absent in their current closed-end structure. This existing structure has often been criticized for preventing investors from redeeming shares when prices fall, resulting in steep discounts relative to Bitcoin’s inherent value.
The introduction of the Bitcoin ETF is expected to provide investors with greater flexibility and potentially stimulate more participation in the cryptocurrency market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
About The Author
