The U.S. Securities and Alternate Rate (SEC) has been ordered to vacate its rejection of Grayscale Investments’ voice to convert its flagship fund – the Grayscale Bitcoin Belief (GBTC) – into an substitute traded fund (ETF).

In an recount issued on Tuesday, U.S. Court of Appeals Circuit Mediate Neomi Rao granted Grayscle’s petition for evaluate, meaning the SEC will want to reevaluate its medication of the GBTC issuer’s application.

Mediate Rao referred to the SEC’s most modern approval of two Bitcoin futures ETFs for getting and selling on nationwide exchanges and it’s denial of Grayscale’s application for a the same product.

“Petitioning for evaluate of the Rate’s denial recount, Grayscale maintains its proposed bitcoin substitute-traded product is materially the same to the bitcoin futures substitute-traded merchandise and may maybe maybe well well light have been current to substitute on NYSE Arca. We agree,” talked about Mediate Rao.

“The denial of Grayscale’s proposal became arbitrary and capricious since the Rate did no longer point to its varied medication of the same merchandise,” she added.

Though the ruling does no longer necessarily imply that the SEC will approve Grayscale’s application, it became light seen as a huge fetch for the digital asset substitute, which has been at the receiving cease of enforcement actions and scrutiny from the securities regulator.

Grayscale CEO Michael Sonnenshein celebrated the ruling in a put up on X, adding that the company’s apt personnel may maybe maybe well well be reviewing the courtroom’s scheme.

GBTC is the field’s wonderful over-the-counter traded Bitcoin fund, with over $17 billion in sources below management. Following the info of the ruling, the discount on GBTC shares narrowed to as low as 24% and the associated rate of Bitcoin rallied 6% to a value of $27,638.