The SEC Chooses Not to Seek Rehearing for Grayscale’s Bitcoin ETF Proposal
In a significant development for the crypto investment community, the Securities and Exchange Commission (SEC) has decided not to seek a rehearing regarding Grayscale Investments LLC’s proposal to convert its Bitcoin trust into a spot Bitcoin exchange-traded fund (ETF). This decision by the SEC opens up the possibility of dialogue between Grayscale and the regulatory agency.
Grayscale’s Pursuit of a Spot Bitcoin ETF
Earlier this year, Grayscale achieved a legal victory in federal court, bringing its proposal to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF one step closer to reality. Following the SEC’s decision not to appeal this ruling, there is renewed hope that a Bitcoin ETF in the US may soon become possible. Analysts predict that there is a 90% chance of SEC approval by January 10.
Competition for SEC Approval
While Grayscale has made significant progress, other contenders are also vying for SEC approval for a Bitcoin ETF. ARK Invest recently submitted an updated version of its Bitcoin ETF prospectus, becoming the first entity to make such amendments. This proactive approach puts ARK ahead of competitors like BlackRock and Fidelity. Previously, there were speculations that the SEC might grant approvals to all Bitcoin ETF applications simultaneously, creating a competitive environment among applicants.
Hot Take: The Future of Bitcoin ETFs
The SEC’s decision not to seek rehearing for Grayscale’s Bitcoin ETF proposal signals progress in the path towards a US-based spot Bitcoin ETF. With dialogue expected to commence between Grayscale and the SEC, there is growing optimism within the crypto community. As competition heats up among various contenders seeking SEC approval, it remains to be seen which entity will be the first to launch a Bitcoin ETF in the US.
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