The United States Securities and Exchange Commission (SEC) has reportedly decided not to appeal the recent court ruling in favor of Grayscale Investments. This ruling requires the SEC to review Grayscale’s application for a spot Bitcoin (BTC) exchange-traded fund (ETF). The news was highlighted in a report from Reuters, citing “a source familiar with the matter”. Bloomberg analysts also believe that the SEC will not appeal to the Supreme Court, although this does not guarantee approval for Grayscale’s application.
If these reports are accurate, the SEC will need to comply with the court’s order from August and review Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The appeals court is expected to issue a mandate specifying how the ruling should be implemented by the SEC. James Seyffart, a Bloomberg ETF analyst, believes that the dialogue between Grayscale and the SEC will begin in the coming weeks, and more information on the next steps will be available soon.
Moving forward, Seyffart suggests that we may find out within the next week or two what the deadline is for the SEC to approve or deny Grayscale’s spot BTC ETF application. If the application is denied, Grayscale will have the option to appeal the decision, which would prolong the process even further.
Currently, there are seven spot Bitcoin ETF applications awaiting a decision from the SEC. Seyffart has previously stated that he believes there is a 90% chance that a spot Bitcoin ETF will be approved in January 2024, specifically referring to Cathie Wood’s ARK Invest application.
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Seyffart and Eric Balchunas, Bloomberg’s senior ETF analyst, have previously suggested that there is a 75% chance of an application being approved in 2023.
Overall, the SEC’s decision not to appeal the court ruling is seen as a positive development for Grayscale and the potential approval of a spot Bitcoin ETF. However, it is important to note that this does not guarantee approval, and further dialogue and review are still required. The cryptocurrency industry will be closely watching these developments as they could have a significant impact on the broader adoption and mainstream acceptance of cryptocurrencies.
