Title: SEC Will Not Appeal Court Ruling, Set to Review Grayscale’s Bitcoin ETF Application
In a recent development, the United States Securities and Exchange Commission (SEC) has reportedly chosen not to appeal a court ruling that favored Grayscale Investments. The court ruling mandates the SEC to review Grayscale’s application for a spot Bitcoin ETF, a significant step towards establishing a regulated Bitcoin exchange-traded fund.
However, analysts at Bloomberg caution against assuming that the court ruling guarantees approval for Grayscale’s application. The SEC must adhere to the court’s order and thoroughly evaluate Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF.
To implement the court’s ruling effectively, the appeals court is expected to issue a mandate outlining specific instructions for the SEC. This mandate will lay out how the SEC should proceed with their review of Grayscale’s application.
Dialogue between Grayscale and the SEC is anticipated to commence next week. During these discussions, both parties will address any concerns or queries related to the application. As the dialogue progresses, it is likely that the SEC’s deadline to approve or deny the application will be unveiled in the coming weeks.
If the SEC decides to deny Grayscale’s application, the company would have the option to appeal the decision, potentially prolonging the process and further delaying the launch of a spot Bitcoin ETF.
Meanwhile, not just Grayscale, but approximately seven other spot Bitcoin ETF applications are currently awaiting a verdict from the SEC. With growing optimism surrounding the approval of Bitcoin ETFs, Bloomberg analyst James Seyffart estimates a 90% chance of the SEC approving a spot Bitcoin ETF application by January 2024.
This positive sentiment aligns with previous suggestions made by Seyffart and Eric Balchunas, who predicted a 75% likelihood of approval for a Bitcoin ETF application in 2023.
The recent court ruling in favor of Grayscale Investments and the subsequent SEC review mark significant milestones in the progression towards establishing a regulated spot Bitcoin ETF. While the outcome remains uncertain, market participants eagerly await the SEC’s final decision and its potential implications for the cryptocurrency market.
“Infuriatingly humble tv expert. Friendly student. Travel fanatic. Bacon fan. Unable to type with boxing gloves on.”