A federal appeals court ruled that SEC regulators should consider Grayscale's application to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. Cryptocurrency prices surged following the decision that could pave the way for future exposures to crypto assets. Grayscale CEO Michael Sonnenshein joins Yahoo Finance Live to discuss the "milestone" ruling and its outlook for bringing future crypto offerings to market. "The judges unanimously agreed with us — 3 to 0 — that the arguments we put forward in front of the court were such that the SEC acted arbitrarily and capriciously by approving the bitcoin futures products but not approving the bitcoin spot products like GBTC's conversion," Sonnenshein states. "The SEC did not have a good explanation as to how to make a distinction between these two product types given that they both derive their pricing from the same underlying bitcoin market." Sonnenshein details the benefits this will bring to both retail and institutional investors alike. "GBTC is just a couple weeks away from celebrating its tenth anniversary and that's ten years of operating within the digital asset ecosystem," Sonnenshein says. "And in contrast a lot of the other products seeking to come to market are merely just ideas, ideas on paper, they're just filings."
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