SEC Chooses Not to Appeal Grayscale Decision, Opening the Door for Bitcoin ETF Approvals
Recent reports suggest that the U.S. Securities and Exchange Commission (SEC) has decided not to appeal a court ruling that overturned its denial of Grayscale’s request to convert its bitcoin trust into an exchange-traded fund (ETF). This move has increased the likelihood of spot Bitcoin ETF approvals, according to Bloomberg’s ETF analyst, James Seyffart.
The SEC had until midnight on Friday to challenge the court’s decision but allowed the deadline to pass without pursuing an appeal. In response, Bitcoin experienced a surge, surpassing $27,000 and currently trading around $27,950.
Grayscale Confirms SEC Window for Rehearing Has Lapsed
Grayscale also confirmed that the SEC’s 45-day window to request a rehearing has expired. As a result, the court is expected to issue its “final mandate” within the next seven days.
Grayscale reiterated its readiness to convert the Grayscale Bitcoin Trust (GBTC) into an ETF once approved by the SEC. They stated that their team remains operationally prepared for this transition and will share more information as soon as possible.
A New Chapter in Crypto Investment Accessibility
In August, the D.C. Circuit Court of Appeals ruled that the SEC’s denial of Grayscale’s application was “arbitrary and capricious.” The court emphasized consistent treatment of similar cases by federal agencies.
This ruling created anticipation in the cryptocurrency community regarding the SEC’s response. While the SEC has not officially confirmed its decision not to appeal, market observers see it as a significant development that could pave the way for the first Bitcoin ETF in the United States.
Grayscale Investment is prepared for the transition and hopes to eliminate the persistent discount between GBTC’s price and its underlying Bitcoin holdings.
Narrowing Discount for Grayscale Bitcoin Trust (GBTC)
The Grayscale Bitcoin Trust (GBTC) has seen a notable decrease in its discount to Bitcoin net asset value (NAV), indicating a potential shift in market sentiment. As of October 13, GBTC’s discount to NAV stands at 15.87%, the lowest level in nearly two years.
The discount to net asset value is an important metric for assessing how accurately a mutual fund or ETF is priced compared to its underlying assets.
Market observers believe that the narrowing discount reflects anticipation of spot Bitcoin ETF approval. Analysts expect GBTC’s discount to further diminish as the prospects of spot Bitcoin ETFs draw closer to approval.
Watching Closely as Crypto Investment Accessibility Evolves
While the SEC’s course of action remains uncertain, both Grayscale and the cryptocurrency community are closely monitoring this development. The final mandate expected from the court will set the tone for this groundbreaking shift in crypto investment accessibility.
Hot Take: Spot Bitcoin ETF Approvals on the Horizon
The SEC’s decision not to appeal the Grayscale ruling has ignited optimism within the cryptocurrency community. With spot Bitcoin ETF approvals now more likely, investors anticipate greater accessibility to Bitcoin through regulated investment vehicles. The narrowing discount for Grayscale’s Bitcoin Trust signals growing market confidence in this potential development. As we await the court’s final mandate, all eyes are on how this new chapter in crypto investment unfolds, potentially opening doors to wider adoption and mainstream recognition of cryptocurrencies.
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