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The U.S. Court of Appeals for the D.C. Circuit has directed the Securities and Exchange Commission (SEC) to reevaluate Grayscale Investments' spot Bitcoin Exchange-Traded Fund (ETF) application today. This decree comes as a response to the SEC's decision not to contest an August 29 ruling, and its subsequent failure to appeal by October 13.

Grayscale's proposal for a Bitcoin ETF application has been favored due to its proficiency in identifying market misconduct. The court has reinforced Grayscale's argument that its proposed Bitcoin ETF is analogous to pre-approved Bitcoin futures ETFs, and therefore, should avoid unnecessary hurdles.

In reaction to the SEC's non-dispute of the August ruling, Grayscale submitted an updated filing with the intention of transforming its GBTC fund into a full-fledged ETF. The company deviated from the standard S-1 process and adopted an expedited S-3 filing. The firm plans to list its shares on NYSE Arca, pending approval.

While Grayscale awaits the SEC's next move, other industry giants such as BlackRock (NYSE:BLK) and Fidelity are also vying for the SEC's approval for their respective Bitcoin ETFs. However, the SEC's future course of action remains uncertain at this point.

https://www.investing.com/news/cryptocurrency-news/grayscales-bitcoin-etf-application-gets-another-review-by-sec-93CH-3206261