SEC will not appeal court ruling on Grayscale GBTC conversion to spot Bitcoin ETF - Reuters
- The SEC is set to accept the court’s decision to approve the conversion of Grayscale’s Bitcoin Trust into an ETF, according to Reuters.
- The precedence set by this development would allow for the myriad of spot BTC ETF applications to be approved as well.
- According to Bloomberg ETF analyst James Seyffart, the chances of a spot BTC ETF approval now stand at 90% before the January 10, 2024 deadline.
Bitcoin spot exchange-traded fund (ETF) has been in demand for a very long time now. The lack of clarity regarding such investment products led to many keeping away from them. However, by the looks of it, the fight that the Securities and Exchange Commission (SEC) put up is finally coming to an end.
Bitcoin spot ETF to be approved soon
The SEC, which religiously has been focused on taking crypto down, seemingly gave up this week, letting the potential of a spot Bitcoin approval increase. According to Reuters, sources noted that the regulatory body decided not to appeal the court’s decision to approve Grayscale’s application to convert the Bitcoin Trust (GBTC) into an ETF.
The asset management firm took the SEC to court last year after the unjustified rejection of the application. While this year, the court ruled in favor of Grayscale, the SEC was given another shot at appealing the decision.
Seemingly, the regulatory body has decided against challenging the court’s decision, suggesting it is ready to approve spot Bitcoin ETF applications going forward.
When is it coming?
According to James Seyffart and Eric Balchunas, senior Bloomberg ETF analysts, the chances of an ETF approval now stand at 90%. The duo noted that the likeliness of the approval is in line with the decision deadline for Ark and 21Shares updated filing. This means that if the SEC does not change its mood, January 10, 2024, will see the approval of spot Bitcoin ETFs.
I've gotten a lot of questions regarding my current view on Spot #Bitcoin ETFs over the last couple weeks. This is the first section of the note I put out yesterday with @EricBalchunas.
— James Seyffart (@JSeyff) October 13, 2023
TLDR: Our view hasn't changed much https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV
Since there are myriad of applications, the market could see a sudden increase in liquidity, which will most likely be the first step in the beginning of the much-awaited bull rally six months before the next BTC halving.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
