Why did the SEC deny grayscale's bitcoin ETF proposal?

A three-judge panel in DC's Court of Appeals in Washington ruled that the SEC's denial of Grayscale's proposal was "arbitrary and capricious" in that the SEC failed to explain the difference in treatment between spot bitcoin ETFs and futures bitcoin ETFs. landmark ruling is believed to be a boon to an industry fraught with regulatory uncertainty.

Are grayscale & CoinDesk the same company?

Grayscale and CoinDesk are part of the same parent company, Digital Currency Group. Grayscale has long had a relationship with the SEC due to its existing Grayscale Bitcoin Trust (GBTC), but when it sought to launch an ETF that would carry direct crypto assets, the agency denied it.

Does grayscale have a relationship with the SEC?

Grayscale has been in contact with both the SEC's Division of Trading and Markets and the Division of Corporation Finance since winning its court fight, said the person, who requested anonymity because the talks remain private. Both SEC divisions would have a role in shaping and approving the firm's ETF application.