Federal appellate court judges are set to hear arguments on Tuesday in Grayscale Investments' case against the U.S. Securities and Exchange Commission over the agency's rejection of the crypto asset manager's application to create a spot bitcoin exchange-traded fund. The case comes as the crypto industry has increasingly been at odds with the SEC over its crackdown on digital asset products, including those that offer investors returns on certain digital tokens. The case's outcome could either offer vindication for the SEC's posture, or pave the way for other companies to offer spot bitcoin exchange-traded funds (ETFs) if the judges rule for Grayscale Investments LLC.