Grayscale’s Bitcoin Trust Conversion into ETF Likely After SEC Appeal Fails
The Securities and Exchange Commission’s (SEC) attempt to block the conversion of Grayscale’s Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF) has failed. This failure paves the way for possible approval of broader Bitcoin spot ETFs in the US.
Deadline Passed for SEC Appeal
A recent court ruling favored Grayscale, and the deadline for the SEC to appeal this ruling has passed. The court order invalidated the SEC’s reasons for denying the conversion of GBTC into a spot Bitcoin ETF.
High Chances of Approval for Grayscale
With no valid objections remaining after declining to appeal, Grayscale can now reapply for conversion with a high likelihood of approval. The SEC would need to provide new grounds for denial, which is unlikely after losing in court.
Potential Impact on Other ETF Proposals
The approval of Grayscale’s conversion could open doors for other asset managers like ARK Invest who have pending spot Bitcoin ETF proposals. Many industry experts believe that this is the most viable route for approval of a Bitcoin spot ETF in the US.
Timing and Market Conditions
This imminent conversion comes at a favorable time as Bitcoin appears oversold based on the relative strength index (RSI). The recent market downturn caused by FTX presents an ideal accumulation phase, similar to the bear market from 2018-2020 that preceded Bitcoin’s significant price surge.
Hot Take: Potential Catalyst for Another Bull Run
The failed appeal by the SEC and the potential approval of Grayscale’s conversion into an ETF could be a catalyst for another bull run in the cryptocurrency market. If more Bitcoin spot ETFs are approved, it could attract significant institutional investment and drive the price of Bitcoin higher.
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