Gary Gensler Reviewing Grayscale Decision on Bitcoin ETF
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stated that his agency is currently reviewing a court decision that favored Grayscale Investments in its pursuit of a spot bitcoin exchange-traded fund (ETF). During a Senate Banking Committee hearing, Gensler was questioned by Senator Bill Hagerty about the requirements for approving a spot bitcoin ETF. Gensler mentioned that the SEC is assessing the Grayscale decision along with multiple filings related to bitcoin exchange-traded products.
An Influential Court Ruling
In August, three judges from the U.S. Court of Appeals for the D.C. Circuit ruled that the SEC must re-review Grayscale’s application for a spot bitcoin ETF. This decision followed Grayscale’s lawsuit against the agency after its plan to convert its GBTC fund was rejected. The court specifically addressed the SEC’s differential treatment between spot bitcoin ETFs and futures-based funds, which the regulator has already approved. This ruling could potentially sway the decision in favor of other firms that have filed for spot bitcoin ETFs, such as BlackRock and Fidelity.
Grayscale Urges SEC Approval
Last week, Grayscale sent a letter to the SEC requesting a meeting and urging the agency to approve its spot bitcoin ETF. In the letter, Grayscale’s lawyers emphasized the importance of issuing an order to authorize the prompt listing of the Trust’s shares. The SEC still has the option to request an en banc hearing or seek review of the D.C. Circuit’s decision in the Supreme Court. After 45 days, the court will issue a final mandate outlining the next steps.
Hot Take: SEC Reviewing Grayscale Decision for Bitcoin ETF Approval
The SEC’s review of the court decision favoring Grayscale has significant implications for the potential approval of a spot bitcoin ETF. This review comes at a time when other firms, including BlackRock and Fidelity, have also filed for spot bitcoin ETFs. The court ruling highlighted the SEC’s differential treatment of spot bitcoin ETFs and futures-based funds, potentially opening the door for similar ETFs to gain approval. Grayscale has actively urged the SEC to approve its spot bitcoin ETF, emphasizing the efficient use of resources and collaboration with the agency. As the SEC continues its review, the final mandate from the court will determine the next steps in this ongoing debate.
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