The US Court of Appeals Orders SEC to Re-Review Grayscale’s Bitcoin ETF Application
The US Court of Appeals has instructed the Securities and Exchange Commission (SEC) to re-evaluate Grayscale Investment’s request to convert its Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF). This decision has had a positive impact on market sentiment in the crypto industry.
Background and Ruling by the Court
The court’s recent mandate reaffirms its previous ruling on August 29, which stated that the SEC’s approval of Bitcoin Futures ETFs while rejecting spot Bitcoin ETFs was “arbitrary and capricious.” The SEC did not appeal against this ruling.
Grayscale’s Efforts to List the Bitcoin Trust Shares on NYSE Arca
Grayscale submitted an S-3 form registration settlement with the SEC on October 19. This submission aims to list the Grayscale Bitcoin Trust shares on the New York Stock Exchange Arca under the ticker symbol GBTC.
SEC’s Reluctance to Approve Spot Crypto ETFs
The SEC has yet to approve any spot crypto ETFs in the US, which has drawn criticism from both the crypto community and legislators such as Patrick McHenry, chair of the House Financial Services Committee.
BlackRock’s Potential First Spot Bitcoin ETF
There are indications that the SEC may succumb to pressure and approve a spot Bitcoin ETF soon. BlackRock, the largest asset manager globally, filed for a spot Bitcoin ETF on June 15. This move encouraged other firms whose applications were previously rejected to reapply.
The BlackRock iShares Bitcoin Trust plans to use Coinbase as its custodian. Recent developments suggest that this ETF might make its way into the market after being listed on the Depository Trust & Clearing Corporation (DTCC), which offers clearing and settlement services for NASDAQ trades.
Bitcoin’s Impact on the Market
The anticipation of ETF approvals has caused Bitcoin to surge to an 18-month high. This price increase resulted in over $300 million worth of Bitcoin shorts being liquidated, according to CoinGlass data. At the time of writing, BTC is trading at approximately $34,518.
Hot Take: The Crypto Market Awaits SEC’s Decision on Spot Bitcoin ETFs
The US Court of Appeals’ ruling to re-review Grayscale’s Bitcoin ETF application has brought renewed hope to the crypto market. The decision highlights the criticism faced by the SEC for its reluctance to approve spot crypto ETFs. Additionally, BlackRock’s filing for a spot Bitcoin ETF and potential listing on the DTCC indicates a changing landscape in terms of regulatory approval. As investors eagerly await the SEC’s decision, Bitcoin continues to dominate attention and experience significant price movements.
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