SEC Won't Appeal Court Decision on Grayscale Bitcoin ETF, Reviews Awaited for Other Applications
Summary:
According to reports, the U.S Securities and Exchange Commission (SEC) will not appeal the court decision favoring Grayscale Investments' Bitcoin ETF application. The SEC is obligated to review the application, however, it does not guarantee approval. Bloomberg anticipates dialogue between Grayscale and SEC within the next week to decide forthcoming steps. Currently, seven Bitcoin ETF applications await SEC decisions, with a strong possibility of approval in 2023 or early 2024.
According to recent reports, the U.S. Securities and Exchange Commission (SEC) has decided not to challenge a court decision in favor of Grayscale Investments. With the court's ruling, the SEC needs to reevaluate Grayscale's application for a Bitcoin exchange-traded fund. Reports from Reuters on October 13 indicate that the SEC will not be contesting the verdict from the D.C. Circuit Court of Appeal, based on information from an insider source.
However, Bloomberg analysts caution that this doesn't necessarily mean approval for Grayscale's application, despite the SEC agreeing to review it, as per the court's order in August. The review comes with the intention to convert Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund. Reuters also suggests the appellate court will provide a detailed ruling for the SEC to adhere to.
Bloomberg ETF analyst James Seyffart predicts a conversation will commence between Grayscale and SEC in the forthcoming week, shedding more light on subsequent steps. James Seyffart stated the deadline for the SEC to either approve or reject Grayscale’s Bitcoin ETF application will possibly be revealed in the nearing couple of weeks. In the event the SEC turns down the application, Grayscale has the option to appeal, which can prolong the procedure.
At present, the SEC is reviewing seven Bitcoin ETF applications. On October 13, Seyffart held onto his belief there's a 90% probability a Bitcoin ETF application will be approved, specifically the application from ARK Invest run by Cathie Wood, in January 2024. Seyffart, along with Bloomberg’s senior ETF analyst Eric Balchunas, also previously estimated that there is a 75% chance that an application will get approved in 2023.
Published At
10/14/2023 12:10:29 AM
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