Grayscale’s Bitcoin ETF Win Is Still Only Half the Battle

The asset manager’s court victory in its push to launch a spot ETF for the cryptocurrency has put the SEC on the defensive. But it’s still too early to call this fight.

Shifting battlefront.

Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images

News that a Washington DC Court of Appeals ruled in favor of Grayscale Investments LLC over the Securities and Exchange Commission has ignited hope that a Bitcoin exchange-traded fund will soon be available. Bitcoin prices jumped.

Crypto fans are using terms like “watershed,” “turning point” and “Rubicon” for the Grayscale v SEC ruling. That’s not unjustified since it could lead to the SEC throwing in the towel and unlocking a virtuous spiral upward in crypto prices and legal acceptability. But it’s also very far from certain as the direct practical effect of this decision is infinitesimal.