The SEC Will Not Appeal Ruling on Grayscale’s Bitcoin ETF Conversion
The Securities and Exchange Commission (SEC) has decided not to appeal a significant ruling regarding Grayscale Investments’ attempt to convert its flagship fund into a spot bitcoin exchange-traded fund (ETF). According to a source familiar with the matter, the agency made this decision before the midnight deadline for an appeal. In August, a three-judge panel in the U.S. Court of Appeals for the D.C. Circuit ruled that the SEC must re-review Grayscale’s bid for a spot bitcoin ETF after the asset management firm sued the agency following its rejection of the conversion plan.
‘Not a Certainty’
Although the SEC’s reported move not to seek a new hearing may create optimism in the industry, it is unlikely that a spot bitcoin ETF will be approved quickly. Jennifer Schulp, director of financial regulation studies at the libertarian think tank Cato Institute, stated that this decision does not guarantee swift approval and that there is still a possibility of the SEC conducting another review and denying it on different grounds, restarting the legal battle.
Bitcoin Price Increase
Following this news, Bitcoin experienced a 0.8% increase, reaching $26,939 at 5:23 p.m. ET, according to CoinGecko.
Hot Take: The Future of Bitcoin ETFs
The SEC’s decision not to appeal the ruling on Grayscale’s bitcoin ETF conversion is significant for the cryptocurrency industry. While it indicates potential progress towards a spot bitcoin ETF, it does not guarantee immediate approval or eliminate future challenges. The industry remains cautiously optimistic as it awaits further developments from regulatory authorities. As Bitcoin continues to gain mainstream acceptance and institutional interest, market participants are hopeful that regulators will eventually approve a bitcoin ETF, providing investors with more accessible and regulated exposure to the cryptocurrency.
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