The recent landmark victory of Grayscale Investments in its lawsuit against the United States Securities and Exchange Commission (SEC) has sent shockwaves through the cryptocurrency industry.  At the heart of this legal battle lies the approval of a spot Bitcoin ETF (Exchange-Traded Fund), a development that has sparked intense speculation and discussion among experts.

Prominent XRP holders’ lawyer, John Deaton, has offered his perspective on the matter. Despite the SEC’s defeat, Deaton acknowledges that the immediate approval of a spot Bitcoin ETF may not be guaranteed.

However, he firmly believes that such an ETF is on the horizon. The critical question, in his view, is when this sought-after approval will materialize, possibly within this year.

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The industry consensus is that Grayscale’s legal victory does not serve as a direct mandate for the SEC to convert the Grayscale Bitcoin Trust (GBTC) into an active spot Bitcoin ETF. The regulatory process will still require time for thorough review and consideration.

This lawsuit win is a significant stride in the ongoing race for Bitcoin ETF approval. Various financial institutions, including BlackRock, Fidelity Investments, and Bitwise, have been vying for SEC approval, with previous attempts facing rejection over the past decade.

Grayscale’s victory and the discrediting of the SEC’s concerns regarding market manipulation could either make or break these pending applications.

Nevertheless, experts universally agree that it marks a substantial step forward in the pursuit of a spot Bitcoin ETF.