Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), has secured a second landmark win for the crypto industry against the U.S. Securities and Exchange Commission (SEC), following Ripple’s favorable ruling last month, broker Bernstein said in a research report Tuesday.

A federal court ruled on Tuesday that the SEC must review its rejection of Grayscale’s attempt to convert the GBTC into an exchange-traded fund (ETF).

The ruling “likely clears the path for a spot bitcoin ETF,” and increases the chances that the SEC might approve all the current applications together, analysts led by Gautam Chhugani wrote.

ETFs are traded on an exchange, much like equities, and track the performance of an underlying asset. Their popularity has been growing because they allow market participants to invest in crypto without having to purchase the underlying digital assets themselves.

The court’s decision does not allow for the GBTC product to be converted into an ETF immediately, “but gives a fair basis for Grayscale to be treated in line with other Bitcoin ETF applicants,” the report said.

Likely dates for approval start next week for the first review, and continue into early 2024 for the final SEC review, the note said.

Bernstein previously said that it expects a spot bitcoin ETF market to be sizable, reaching 10% of bitcoin’s market cap in two to three years.

CoinDesk’s parent company, Digital Currency Group, owns Grayscale.

Grayscale Grayscale Bitcoin Trust SEC Court ETFs

Will Canny

Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He's now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.