The U.S. Securities and Exchange Commission (SEC) has reportedly decided not to appeal the recent court decision in favour of Grayscale Investments. This decision mandates the SEC to review Grayscale’s application for a spot Bitcoin exchange-traded fund (ETF).
The court’s ruling came after Grayscale sought to transform its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The SEC’s decision not to challenge the verdict was highlighted in a report by Reuters on October 13, 2023, citing a source familiar with the situation.
Bloomberg analysts anticipate that the SEC will not appeal to the Supreme Court. However, they emphasized that this doesn’t necessarily guarantee approval for Grayscale’s application. James Seyffart, a Bloomberg ETF analyst, commented on the developments, stating,
“I do not think they will appeal to the Supreme Court either. Dialogue between Grayscale and SEC should begin next week. Hoping for more info on next steps sometime next week or week after.”
If the reports are accurate, the SEC will have to adhere to the court’s August directive and review Grayscale’s application. The appeals court is expected to provide specific guidelines on how the SEC should execute its ruling. Seyffart suggests that the deadline for the SEC’s decision on Grayscale’s spot BTC ETF application will likely be revealed in the coming week or two. If the SEC denies the application, Grayscale has the option to appeal the decision, potentially prolonging the process.
As of now, approximately seven spot Bitcoin ETF applications are pending before the SEC, awaiting the regulator’s decision. In a recent post, Seyffart expressed his belief that there’s a 90% likelihood of a spot Bitcoin ETF application being approved by January 2024, particularly the application submitted by Cathie Wood’s ARK Invest.
The SEC’s decision not to appeal the court’s ruling in favor of Grayscale marks a significant development in the crypto industry. With multiple spot Bitcoin ETF applications in the pipeline, the industry awaits the regulator’s next moves with bated breath.
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