The Globe and Mail reports in its Wednesday edition that the U.S. Securities and Exchange Commission should have approved an application from Grayscale Investments to create a spot bitcoin exchange-traded fund, a Federal Appeals Court ruled on Tuesday, in a landmark victory for the asset manager that could pave the way for the first product of its kind. A Reuters dispatch to The Globe says that a panel of judges in the District of Columbia Court of Appeals in Washington said the securities regulator was arbitrary and capricious in denying the product because it failed to fully explain its reasoning. The price of bitcoin, the world's largest cryptocurrency, was last up 4.71 per cent at $27,333 (U.S.) following the decision. A spot bitcoin ETF would track its underlying market price, giving investors exposure to the digital asset without the need to buy the currency. The SEC has denied all proposed bitcoin ETFs, including Grayscale's, saying they do not meet its bar for preventing market manipulation. In a statement, a Grayscale spokeswoman said the court decision was "a monumental step forward for American investors." An SEC spokesman said the regulator was reviewing the court's decision to determine next steps.