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October 16, 2023 at 10:30 AM
The U.S. Securities and Exchange Commission will not ask a federal appeals court to reconsider a ruling that paves the way for Grayscale Investments LLC to launch a spot Bitcoin exchange-traded fund, according to a person familiar with the matter.
In August, the D.C. Circuit Court of Appeals overturned the SEC’s rejection of Grayscale’s bid to convert its trust into an exchange-traded fund. The ruling was made by just three of the judges on the court and the regulator could have sought a review by a full slate of judges.
The agency is not planning any other appeals in the case, said the person, who asked not to be identified discussing the ongoing matter.
Grayscale has said that investors would benefit from conversion to an ETF, as shares could be easily created and redeemed. The current closed-end structure doesn’t let investors redeem shares when prices decline, leading to trading at steep discounts relative to the underlying Bitcoin.
