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Bailey McCann, Opalesque New York:

Digital assets firm Grayscale may be closer to launching a Bitcoin ETF. The U.S. Court of Appeals for the D.C. Circuit sided with the firm in a lawsuit against the Securities and Exchange Commission which denied an effort to convert Grayscale's Bitcoin Trust into a Bitcoin ETF.

The SEC originally denied Grayscale's conversion request by arguing that the firm had failed to sufficiently explain how it planned to avoid manipulation of the Bitcoin spot market.

However, "the Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale's proposed bitcoin ETP," the court said in its opinion. "In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful."

It's unclear now how either side will go forward. Both sides issued statements saying they were in the process of reviewing the particulars of the court's opinion.

The opinion could also have implications for BlackRock and Fidelity - both firms also want their own Bitcoin ETFs. If the SEC wants to keep these products off the market, it will have to come up with a different regulatory rationale or it could choose to appeal the decision.

"It's excellent that the judge in the Grayscale vs. SEC case was able to see the obvious correlation between Bitcoin futures and spot price," Greg Moritz, Chief Operating Officer at A......................

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