Digital currency asset manager Grayscale Investments has experienced an inflow of $1.17bn since a court ruled in its favor on 29 August against the US Securities and Exchange Commission according to data provider CCData.
“The wider digital asset market also experienced a rebound, with market participants speculating if this outcome could push the United States closer to the introduction of its first spot Bitcoin ETF,” added CCData in a report.
Grayscale’s total assets under management increased by 7.2% to $17.4bn according to the report.
Grayscale Investments said on 29 August that the D.C. Circuit Court of Appeals ruled in favor of its lawsuit challenging the decision by the SEC to deny conversion of Grayscale Bitcoin Trust to an exchange-traded fund, despite the regulator approving bitcoin futures ETFs.
The ruling said that in order to avoid arbitrariness and caprice, administrative adjudication must be consistent and predictable and follow the basic principle that similar cases should be treated similarly and that NYSE Arca presented substantial evidence that Grayscale is similar, across the relevant regulatory factors, to bitcoin futures ETPs.
Michael Sonnenshein, chief executive of Grayscale, said in a statement that the asset manager has adhered to U.S. financial rules and regulations in building products since its founding in 2013. He said: “It’s incredibly exciting that we are one step closer to making a U.S. spot Bitcoin ETF a reality.”
Brian Armstrong, co-founder & chief executive at crypto exchange Coinbase, said:
Blockworks Research said in a report that the ruling means that the SEC has to review the Grayscale application again, but it does not necessarily mean that Grayscale can convert the fund into an ETF just yet. Blockworks added: “However, taken at face value, this is a very promising development for Grayscale, and the numerous spot Bitcoin ETF applications that are pending.”
Ji Kim, general counsel and head of global policy for the Crypto Council for Innovation, said in an email that the door is now open for a range of investors, including those who have historically been apprehensive due to a lack of regulatory clarity.
“This ruling is not just about Grayscale or Bitcoin, it sets a precedent for the broader crypto industry. This is big, positive, and precedent setting news,” added Kim. “As spot bitcoins ETFs are now closer to a potential launch, we’re witnessing real-time investor confidence in the crypto space amidst this court’s ruling.”
Jake Chervinsky, chief policy officer at the Blockchain Association, said:
This article was initially published on Markets Media: https://www.marketsmedia.com/grayscale-adds-1bn-aum-following-win-against-sec/
