SEC Won't Appeal Court Ruling on Grayscale Bitcoin ETF Rejection, Clearing Path for Application Review

The SEC will not appeal a court ruling that said it was wrong to reject Grayscale's proposed bitcoin ETF.

The decision paves the way for the SEC to review Grayscale's application again.

The SEC has rejected all spot bitcoin ETF applications so far over concerns about market manipulation.

Grayscale sued the SEC after it rejected their application, arguing similar protections were approved for bitcoin futures ETFs.

The appeals court ruled the SEC arbitrarily denied Grayscale's application without explaining differences between spot and futures ETFs.