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News

Grayscale Bitcoin ETF Is Expected To Be Approved Soon As The SEC Didn’t Appeal

October 14, 2023 - Around 2 mins mins to read

Key Points:

  • The SEC has chosen not to appeal a court ruling that found its rejection of the Grayscale Bitcoin ETF application was unjust.
  • This decision could expedite the review process of Grayscale’s application to convert its GBTC into a spot Bitcoin ETF.
  • The move marks a significant development in the SEC’s approach to crypto ETFs.
In a significant development for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has opted not to appeal a recent court ruling, signaling a potential shift in the regulatory landscape. The ruling found the SEC’s rejection of Grayscale Investments’ application to establish a spot Bitcoin exchange-traded fund (ETF) to be unjust.
Grayscale Bitcoin ETF Is Expected To Be Approved Soon As The SEC Didn't Appeal

SEC Decides Not to Appeal Ruling on Grayscale Bitcoin ETF Application

According to Reuters, this decision by the SEC comes after the D.C. Circuit Court of Appeals ruled in August that the agency’s rejection of the Grayscale Bitcoin ETF was erroneous. While the decision not to appeal doesn’t guarantee approval, it does expedite the review process.

If reports are accurate, the SEC will now be obligated to comply with the court’s August order, which requires a review of Grayscale Bitcoin ETF’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The appeals court is expected to outline specific instructions on how the ruling should be implemented.

A spot Bitcoin ETF would provide investors with exposure to the world’s largest cryptocurrency without requiring direct ownership. However, the SEC has consistently denied such applications, citing concerns about investor protection from market manipulation.

Potential Shift in Crypto Regulatory Landscape as SEC Shows Flexibility

The future steps the SEC will take regarding Grayscale Bitcoin ETF’s application remain uncertain. The agency retains the authority to deny it for different reasons, although such decisions could be contested in court.

Grayscale first applied to transition its closed-end fund into an ETF in October 2021. GBTC, the world’s largest cryptocurrency fund, has faced fluctuations in its discount relative to its Bitcoin holdings.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin ETF

GBTC

Grayscale

Grayscale Bitcoin ETF

SEC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.