SEC Fails to Challenge Grayscale’s Court Win for Bitcoin ETF
The United States Securities and Exchange Commission (SEC) has missed its deadline to appeal against Grayscale’s court victory for the approval of a spot Bitcoin exchange-traded fund (ETF). According to a source familiar with the matter, the financial agency has decided not to pursue the case further in court.
The Legal Battle between SEC and Grayscale
Last year, Grayscale applied to the SEC to convert its flagship product, Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF. This move was part of Grayscale’s plan to convert its major Trust products into ETFs. The approval would enable Grayscale to offer a more efficient Bitcoin-backed asset that tracks Bitcoin’s price compared to GBTC.
After the SEC rejected Grayscale’s request, the investment company filed a lawsuit against the regulatory agency. In August this year, Grayscale won the court case when three federal judges directed the SEC to consider approving its spot Bitcoin ETF application.
Implications of SEC’s Decision
The SEC’s decision not to challenge the court ruling allows them to review Grayscale’s application. However, it does not guarantee that the spot Bitcoin ETF will be approved. Jennifer Schulp, director of financial regulation studies at the Cato Institute’s Center for Monetary and Financial Alternatives, emphasized that approval is not certain as the SEC could re-review and deny on different grounds.
Hot Take: What Does This Mean for Crypto Investors?
The SEC’s choice not to appeal in court is a positive development for those hoping for a Bitcoin ETF. It indicates that there is progress towards potential approval. However, investors should remain cautious as there are still uncertainties surrounding the final decision. The crypto community eagerly awaits further updates from the SEC regarding the fate of Grayscale’s spot Bitcoin ETF application.
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