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- Grayscale wins lawsuit against the SEC, which could open the door for a spot-based Bitcoin ETF.
- Ripple community speculates the legal victory might motivate Grayscale to re-add XRP to its Digital Large Cap Fund.
In a landmark ruling, Grayscale Investments, a leading firm in the digital asset management sector, has emerged victorious against the U.S. Securities and Exchange Commission (SEC). The win has been hailed as a significant milestone, not just for Grayscale but potentially for the broader crypto industry as well.
The SEC’s Recent Setbacks
The SEC has been hitting roadblocks in its regulatory efforts against crypto companies, including a partial loss against Ripple last month. This second significant defeat indicates dwindling momentum for the SEC’s crypto crackdown. Grayscale had accused the SEC of arbitrary decision-making by rejecting its application to transform the Grayscale Bitcoin Trust into a spot-based exchange-traded product (ETF).
Court Finds in Favor of Grayscale
In its June lawsuit against the SEC, Grayscale made a compelling case: there was no legitimate reason for the regulator to reject spot-based Bitcoin ETF applications while approving futures-based ETFs for the same asset. The court sided with Grayscale, fueling speculations about the long-awaited appearance of a spot-based BTC ETF.
Ripple Community Buzzing with Expectation
While the immediate attention has been on the likelihood of spot-based Bitcoin ETFs, the Ripple community is optimistic that this victory will have ripple effects (pun intended). Some believe that Grayscale’s win could act as a catalyst for the re-inclusion of Ripple’s XRP in its Digital Large Cap Fund.
@BarrySilbert Victory for $GBTC
Congratulation.. 🥳
When the return of #XRP on @Grayscale Digital Large Cap?
It's time.. A level Playing Field.. https://t.co/QrKDYaxzsh
— RIZ.XRP ☀️ (@RizXRP) August 29, 2023
Riz, an XRP community figure, tweeted congratulating Grayscale on its victory and questioning when XRP will make its return to the Digital Large Cap Fund, signaling the buzz and speculation among XRP enthusiasts.
A Historical Recap: XRP’s Removal from Grayscale Fund
For context, XRP was removed from Grayscale’s Digital Large Cap Fund in January 2021 following an SEC lawsuit labeling it as an unregistered security. The fund sold its XRP holdings and diversified into other assets. Grayscale’s recent win against the SEC is seen as a potential motivator to revisit this decision.
The crypto industry and investors alike are closely watching Grayscale’s next moves, as the firm’s decisions are often seen as a barometer for broader market sentiment and regulatory trends. Given the monumental nature of its recent legal win, these next steps are eagerly awaited.
