Grayscales application is moot at this point. It was already rejected. They only way they get theirs approved now is by re applying or by winning their lawsuit and having the court enjoin the SEC to approve the previously rejected application. But the SEC just approving the grayscale application out of nowhere is out of the question now because there’s no application to approve anymore.

The Blackrock application does have interesting implications for the SEC given the grayscale suit though. If the SEC approves Blackrocks application (assuming it’s spot), I’m not sure how they could defend themselves in court saying they were in the right when they rejected grayscales application.