The SEC has hours left to appeal the court’s decision rejecting Grayscale’s application to convert from a trust to an ETF. The move made by the agency is very important for Bitcoin and the cryptocurrency market.
What will the SEC do regarding Grayscale’s Bitcoin ETF dispute?
It’s the final hours for the U.S. Securities and Exchange Commission (SEC) to appeal its dispute with Grayscale Investments over establishing a spot Bitcoin (BTC) exchange-traded fund (ETF). If the agency does nothing else by midnight, Grayscale’s application to convert its Bitcoin Trust (GBTC) into an ETF will officially come to life.
Industry observers expect the SEC to let the deadline expire. Because, cryptokoin.comAs you follow from , the D.C. Court of Appeals’ decision 45 days ago was clear and even harsh in its assessment of how the agency denied the application. He called it “arbitrary and capricious.” He also said the regulator improperly tried to treat a spot ETF differently than a similar futures ETF. However, the SEC technically has the authority to extend the dispute further if it wishes.
Grayscale: ‘We’re ready!’ says
It could be a Bitcoin-focused, mainstream investment product that can be easily bought and sold. The industry hopes a spot ETF will bring investors off the sidelines. Grayscale first filed to convert its GBTC closed-end fund (which currently has approximately $17 billion in assets under management) into a spot Bitcoin ETF in October 2021.
Grayscale, a unit of Digital Currency Group, is not alone in seeking this approval. High-profile financial firms such as BlackRock and Fidelity are also waiting for the SEC’s announcement regarding their applications for spot Bitcoin ETFs. Grayscale spokeswoman Jennifer Rosenthal said in a statement Friday:
GBTC remains operationally ready to be converted into an ETF upon appropriate regulatory approvals.
What will be the impact of the Spot Bitcoin ETF?
It’s possible it could be a victory for ETF applicants. However, it is unclear when the first product will be implemented. Also, there are many questions about who will hold this title. The approvals required from the SEC are wide-ranging and involve multiple departments within the organization. Additionally, it remains unclear whether the agency will approve several applicants at once. What’s more, it’s unclear whether applications will proceed on a timeline depending on when they arrive. As for the markets, experts predict that the SEC’s eventual approval of Bitcoin ETFs is at least partially priced in. Coinbase Institutional institutional research manager David Duong underlines the following points in the monthly report he sent to his subscribers:
This makes it less clear how much better Bitcoin could perform in the event of a positive US Securities and Exchange Commission (SEC) decision.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!