Cryptocurrency asset manager Grayscale has scored a major victory against the U.S. Securities and Exchange Commission.
In a landmark ruling, Judge Neomi Rao of the D.C. Circuit Court of Appeals stated that the "denial of Grayscale's proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products."
The price of Bitcoin, the largest cryptocurrency, managed to top $27,000 following the ruling. The flagship coin has reached an intraday high of $27,740 on the Bitstamp exchange. The shares of major crypto companies, such as Coinbase, are also on the rise following the decision.
It is worth noting that Grayscale was widely expected to score a win against the SEC after a recent ruling in the Ripple case.
The company, which is helmed by Michael Sonnenshein, described the ruling as "a monumental step forward" for American investors.
However, as noted by leading ETF expert James Seyffart, the ruling does not mean that Grayscale's GBTC product will be automatically converted into an ETF. With that being said, the ruling might pave the way to the very first spot Bitcoin ETF in the U.S.
Eric Balchunas, another prominent voice in the ETF industry, also said that there are things that have to be "sorted out" before a spot Bitcoin ETF is a done deal.