Gary Gensler said that the Grayscale court decision was the key to the adoption of the Bitcoin ETF
Gary Gensler, chairman of the United States Securities and Exchange Commission, acknowledged on January 12 that the grayscale court victory was crucial in approving Bitcoin (BTC) exchange-traded funds (ETFs).
Although the SEC has rejected many applications for a similar product since 2013, Gensler said in an interview with CNBC's Squawk Box that a court decision in August 2023 in favor of asset manager Grayscale changed the SEC's view on the crypto investment vehicle.
“We rejected some of these. [applications for a spot Bitcoin ETF] Over the years, something has changed. I have a deep belief in the rule of law and respect for the courts, and we will move forward with a new court decision in mind. I think this is the most sustainable way. “
Despite the move, Gensler reiterated that the endorsement was not an endorsement of Bitcoin. “We don't accept it. [Bitcoin]He said.
In June 2022, the SEC rejected Greyscale's application to convert the Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF, saying the product was “not designed to protect against fraudulent and fraudulent practices and practices.”
In response, Grayscale filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit. On August 29, 2023, the court ruled in Grayscale's favor that the SEC's legal reasoning was insufficient and ordered the case to be returned to the Commission, marking a major victory for Grayscale.
The legal battle proved beneficial for Greyscale. On January 10, the SEC gave its blessing to 10 ETFs that hold Bitcoin as their underlying asset.
The opening trading session was marked by high activity, with Greyscale's GBTC trading volume at $2.3 billion — about half of the day's total volume of $4.5 billion, according to Yahoo Finance data.
BlackRock's iShares Bitcoin Trust (IBIT) came in second with trading volume approaching $1 billion. Also speaking to CNBC's Squawk Box program, BlackRock CEO Larry Fink spoke of cryptocurrency as an asset class, not a currency.
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