Grayscale’s Victory Over the US SEC in Bitcoin ETF Dispute Nears Confirmation!

Key Takeaways:

• A federal court is on the verge of officially recognizing Grayscale Investments’ triumph over the SEC in a dispute regarding a spot Bitcoin ETF application.
• While the court is closing the case, it’s uncertain if it will direct the SEC regarding the next steps for reviewing Grayscale’s application.
• The SEC could potentially reject the application again for different reasons or opt to approve it, alongside similar applications from companies like BlackRock and Fidelity.
• If approved, Grayscale plans to convert its Bitcoin Trust (GBTC) into an exchange-traded product (ETF), listing it on NYSE Arca for broader investor accessibility.
• The timing for the SEC’s decision on these ETFs remains uncertain, but the industry anticipates their eventual approval.

Grayscale vs SEC Coming to a Close!

In a significant development, a federal court is on the verge of formally confirming Grayscale’s victory over the Securities and Exchange Commission (SEC) in their ongoing legal dispute concerning a spot bitcoin Exchange Traded Fund (ETF) application.

Two months ago, Grayscale Investments secured a significant win in their legal battle with the SEC over their spot bitcoin ETF application. Now, the case is in its final stages as the D.C. Circuit Court of Appeals, responsible for such matters, has a looming seven-day deadline to conclude the case. This deadline is rapidly approaching, and the court faces two possible courses of action.

The first option is to close the case without specific comments, while the second involves issuing further directives to the SEC regarding subsequent actions. This decision is the central focus of this closely monitored legal dispute, casting uncertainty over the fate of Grayscale’s ETF application.

Read More: Grayscale vs SEC

Bitcoin Spot ETF Finally on the Way?

The SEC faces critical decisions that will shape Grayscale’s application. They can reject it again, and provide approval for Grayscale and other giants like BlackRock and Fidelity, or the timing and decision might remain uncertain. Grayscale aims to convert its Bitcoin Trust (GBTC) into an exchange-traded product if approved, offering it to a broader range of investors on NYSE Arca.

The final court decision is expected on the Friday deadline, possibly extending to Monday due to the late-night timeline. Grayscale is ready to facilitate the GBTC-to-ETF conversion and collaborate swiftly with the SEC, says Jennifer Rosenthal, a Grayscale spokeswoman. Grayscale has also proactively submitted a registration statement, Form S-3, with the SEC to list GBTC shares, pending the SEC’s response.

The outcome of this legal battle holds immense significance for Grayscale’s ETF application and garners widespread attention from investors and industry stakeholders. The SEC’s timing and decisions regarding these ETFs will have extensive ramifications for the crypto and investment communities.

Additional Read: Bitcoin Price Prediction

Source: CoinDesk