The SEC faces a looming deadline in the Grayscale Bitcoin ETF case, with ramifications for the future of spot Bitcoin ETFs.
The U.S. Securities and Exchange Commission (SEC) finds itself at a pivotal juncture as the deadline for a crucial decision in the Grayscale Bitcoin ETF case approaches.
A recent post by Eleanor Terrett, a journalist from Fox Business, serves as a reminder that the SEC has until midnight to take action on Grayscale’s bid for a spot Bitcoin ETF. Failure to act within the specified timeframe will effectively close the case and grant Grayscale the opportunity to advance further in the approval process.
The Waiting Game Ends
Today, October 13, marks when the SEC must respond to the D.C. Circuit Court of Appeals’ ruling. The regulatory agency has two options: file an appeal with the United States Supreme Court, urging the Appeals Court to reconsider its judgment, or comply with August’s directive.
This directive comprehensively evaluates Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF). If the SEC refrains from appealing, Grayscale can initiate collaboration with the SEC to proceed with the approval process, working alongside the Divisions of Corporation Finance and Trading and Markets.
🚨NEW: The @SECGov has until midnight tonight to appeal the @Grayscale decision. If they don’t, then in seven days from now the case will be closed and Grayscale can start working with SEC staff to get the process of approval rolling.
Note: Grayscale would work with two SEC…
— Eleanor Terrett (@EleanorTerrett) October 13, 2023
Also Read: SEC Delays Spot Bitcoin ETF Decision For Leading Firms Amid Government Shutdown Concerns
Skepticism in the Air
On October 12, Eric Balchunas, an ETF analyst from Bloomberg, responded to a user’s query, expressing doubts about the likelihood of an appeal from the SEC. While he cast doubt on a potential appeal, he also acknowledged the existence of ongoing complexities and challenges within the regulatory framework.
Also Read: Grayscale’s Ether Futures ETF Application Takes Center Stage
A Precedent for the Future
Although these applications were initially submitted to the regulator at the outset of 2023, they have faced continuous hurdles and resistance from the SEC. As a result, the expected final approval dates for most of these applications have been pushed to March 2024 or later.
Consequently, the SEC’s decision regarding Grayscale could serve as a precedent, influencing the fate of other spot Bitcoin ETFs currently in the pipeline.
Disclaimer: This content is not intended as financial advice. Cryptocurrency investments carry inherent risks. When investing, you should be aware of the potential capital loss.
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