Bitcoin ETF appears to be on the way after court hands the SEC a stinging loss

NEW YORK (AP) — The cryptocurrency fund manager Grayscale won a major court battle Tuesday against the Securities and Exchange Commission, paving the way for the first bitcoin exchange-traded fund.  

Grayscale sued the SEC last year when the securities regulator denied its application to turn its bitcoin fund, known as GBTC, into an ETF. The ETF would be backed by bitcoin instead of bitcoin futures, according to Grayscale's application at the time.  

The SEC rejected the company’s application over concerns about investor protections and other issues. However, the District of Columbia Court of Appeals sided with Grayscale, handing the SEC another setback in its attempt to regulate cryptocurrencies. 

Bitcoin jumped 8% Tuesday.