The SEC Will Not Appeal Court Decision on Grayscale Bitcoin ETF Application
The U.S. Securities and Exchange Commission (SEC) has reportedly decided not to appeal a recent court ruling that favored Grayscale Investments. This ruling requires the SEC to review Grayscale’s application for a spot Bitcoin exchange-traded fund (ETF). Bloomberg analysts believe that the SEC will not appeal to the Supreme Court, although this does not guarantee approval for Grayscale’s application.
Reviewing Grayscale’s Application
If the reports are accurate, the SEC will need to follow the court’s order and review Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The appeals court is expected to issue a mandate detailing how the SEC should execute its ruling.
Next Steps and Potential Delays
Bloomberg ETF analyst James Seyffart predicts that dialogue between Grayscale and the SEC will begin next week. It is likely that we will find out in the coming weeks what the deadline is for the SEC to approve or deny Grayscale’s spot BTC ETF application. If denied, Grayscale could appeal, further prolonging the process.
Other Spot Bitcoin ETF Applications
Currently, there are approximately seven spot Bitcoin ETF applications awaiting a decision from the SEC. Seyffart believes there is a 90% chance that a spot Bitcoin ETF application, specifically Cathie Wood’s ARK Invest, will be approved in January 2024. Seyffart and Eric Balchunas from Bloomberg previously suggested a 75% chance of approval in 2023.
Hot Take: Potential Approval for Grayscale and Other Applicants
If the SEC does not appeal the court decision on Grayscale’s application, it signals a positive step towards the approval of a spot Bitcoin ETF. This decision may also impact the outcome of other pending applications. Investors and industry experts eagerly await further developments and the SEC’s final decision on these ETFs.
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