The SEC Will Not Appeal Court Ruling on Grayscale Bitcoin ETF
According to reports from Reuters and Bloomberg, the Securities and Exchange Commission (SEC) has decided not to file a last-minute appeal challenging an August court ruling. This ruling makes it more likely that crypto asset manager Grayscale will be able to launch a Bitcoin exchange-traded fund (ETF). The court had previously ruled that the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot market Bitcoin ETF was “arbitrary and capricious.” The court reasoned that since the SEC had approved Bitcoin futures ETFs, it could not reject spot market products.
Time is Running Out for the SEC
The SEC has until midnight tonight to appeal the court’s ruling. However, if the appeal is not filed, it does not automatically mean that Grayscale’s bid will be approved. The court is expected to request that the SEC revisit Grayscale’s application. At this point, the SEC could still argue for rejection on different grounds.
Bitcoin Price Jumps After Reports of No Appeal
Following reports of the SEC’s decision not to appeal, the price of Bitcoin experienced a sharp increase of approximately 1.3%. This news indicates positive sentiment among investors regarding the potential approval of a Bitcoin ETF.
Hot Take: Implications for the Crypto Market
The SEC’s decision not to appeal the court ruling is significant for the cryptocurrency market. If Grayscale’s Bitcoin ETF is eventually approved, it could attract more institutional investors and potentially lead to increased mainstream adoption of cryptocurrencies. The anticipation of this outcome has already resulted in a positive price movement for Bitcoin. However, it is important to note that there are still additional steps in the approval process, and nothing is guaranteed at this stage. Nonetheless, the decision by the SEC not to appeal is seen as a step forward for the crypto industry.
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