The Securities and Exchange Commission (SEC) had rejected the move, but a federal appeals court ruled that the regulator was wrong to reject an application from the company.
While the ruling does not mean its ETF is approved, the decision along with a spate of filings by asset managers like BlackRock and Invesco for similar investment vehicles have boosted sentiment in the crypto markets.
Earlier this month, a source familiar with the matter told Reuters the SEC was not planning to appeal the court ruling, fueling hopes that the filings could be approved soon.
That has led to a rise in the price of bitcoin in recent days. The world’s biggest cryptocurrency hit its highest in nearly a year and a half on Tuesday.
The FTSE-Grayscale indices would track the performance of crypto assets in five categories – currencies, smart contract platforms, financials, consumer and culture and utilities and services.
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“Investors have increasingly expressed interest in diversifying beyond crypto’s largest assets – Bitcoin and Ethereum – and many look to Grayscale to better understand this robust, evolving asset class,” CEO Michael Sonnenshein said. All the five indices will be reassessed quarterly, Grayscale said.
