Spot Bitcoin ETF Application to be Reviewed
The U.S. Securities and Exchange Commission (SEC) has reportedly decided not to appeal a recent court ruling that favored Grayscale Investments. The ruling requires the SEC to review Grayscale's spot Bitcoin exchange-traded fund (ETF) application, according to a source familiar with the matter.
SEC Unlikely to Appeal to Supreme Court
Bloomberg analysts also expect the SEC to forgo appealing to the Supreme Court, although this does not guarantee approval of Grayscale's application.
SEC Must Follow Court's Order
If the reports are accurate, the SEC will need to comply with the court's order and review Grayscale's application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The appeals court is expected to provide specific instructions on how the ruling should be executed by the SEC.
Next Steps for Grayscale and SEC
Bloomberg ETF analyst James Seyffart expressed his belief that the SEC will not appeal to the Supreme Court and anticipates that dialogue between Grayscale and the SEC will commence in the coming week. Seyffart expects more information on the next steps to be provided soon.
Deadline for SEC's Decision
Seyffart suggests that the SEC's deadline to approve or deny Grayscale's spot Bitcoin ETF application will likely be revealed within the next week or two. If the application is denied, Grayscale may choose to appeal the decision, extending the process further.
Multiple Spot Bitcoin ETF Applications Await Decision
Around seven spot Bitcoin ETF applications are currently pending before the SEC, awaiting a decision from the regulator.
Positive Outlook for Bitcoin ETF Approval
Bloomberg analysts have previously stated that there is a 90% chance of a spot Bitcoin ETF application being approved in January 2024, specifically referring to Cathie Wood's ARK Invest application. They have also suggested a 75% chance of approval in 2023.
