Good news for bitcoin enthusiasts! The DC Circuit Court of Appeals has officially ruled in favor of Grayscale in their case against the SEC regarding the conversion of their Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF. This decision cannot be appealed, solidifying Grayscale’s victory.
Grayscale is responsible for managing the world’s largest bitcoin fund, holding over 621,000 BTC. While GBTC is not currently an ETF and is only listed OTC, Grayscale sought approval from the SEC to convert it into a true spot bitcoin ETF. Initially, the SEC denied the application, leading to Grayscale’s lawsuit.
The Court of Appeals determined that the SEC did not have sufficient grounds to reject Grayscale’s application, effectively overturning their decision. Although the ruling does not explicitly order the SEC to approve the application, it is expected that they will do so.
This ruling has broader implications beyond Grayscale’s GBTC. There are several similar applications awaiting approval from the SEC. Speculation suggests that they may approve them all together to prevent any one manager from gaining an advantage. BlackRock is already preparing for the launch of its spot bitcoin ETF, indicating that approval may be imminent.
While it is uncertain if all applications will be approved, it appears that at least two (BlackRock and Grayscale) meet all requirements. The impact on the markets has been significant, with bitcoin’s price already reflecting expectations of spot bitcoin ETF approval. BTC dominance has also reached a two-year high.
In conclusion, this ruling sets a precedent for future approvals of spot bitcoin ETFs. The long-term impact on the market will be substantial as these ETFs are directly backed by BTC and require managers to buy and hold bitcoins to cover shares issued. Combined with the upcoming fourth halving of bitcoin in six months, the future looks promising for cryptocurrency enthusiasts.
Hot Take: A Promising Future for Bitcoin ETFs
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