Grayscale’s Pursuit of Spot Bitcoin ETF
Grayscale took a bold step by pursuing the conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Initially, the SEC resisted this move, citing concerns about market maturity and potential manipulation.
However, Grayscale Investments did not accept this verdict and filed a lawsuit against the commission under Gary Gensler’s leadership. They bolstered their legal team by hiring Donald B. Verrilli, who had experience as a Solicitor under the Obama Administration.
Their efforts paid off when they scored a victory against the regulator in late August 2023. The ruling requested the SEC to review its decision and deemed the denial “arbitrary and capricious.”
In a surprising turn of events, the SEC refused to file an appeal, increasing the likelihood of Grayscale Investments securing approval later on.
Impressive Fight Against All Applicants
Grayscale Investments played a significant role in pushing for the spot Bitcoin ETF, but other applicants like BlackRock Inc., Fidelity Investments, Bitwise, and VanEck also contributed to its development.
The SEC engaged in extensive negotiations with these applicants, demanding specific requirements such as adopting the Cash Creates model and lowering fees to compete with other products. It has been a marathon race to launch the spot Bitcoin ETF, with hopes that it will be worth it in the long term.
Hot Take: Historic Approval of Spot Bitcoin ETF by SEC
History was made in the United States as the Securities and Exchange Commission (SEC) approved the long-awaited spot Bitcoin Exchange Traded Fund (ETF). This approval confirms Grayscale Investments’ success in pursuing their vision for a spot Bitcoin ETF. Despite initial resistance from the SEC due to concerns about market maturity and manipulation, Grayscale Investments fought back, ultimately securing a victory in court. The ruling compelled the SEC to review its decision, and with the SEC’s refusal to appeal, the path is now open for Grayscale Investments and other applicants to move forward with launching the spot Bitcoin ETF. This approval marks a significant milestone in the adoption of cryptocurrency in traditional financial markets.
By
By
By
By
By