Quick Facts:
- The SEC’s closed-door meeting signifies a crucial turning point in the Grayscale ETF journey, suggesting that a significant decision might be in the making.
- The comprehensive agenda of the SEC’s meeting covers a wide range of topics, including settlements and resolutions, setting the stage for a time-bound approval process.
The U.S. Securities and Exchange Commission (SEC) is stirring the cryptocurrency market once again, and this time it’s about the Grayscale application for approval of a spot Bitcoin ETF. Recent developments suggest that a high-level discussion might be on the horizon.
SEC’s Closed-Door Meeting: A Game-Changing Move
The SEC’s Closed-Door Meeting The SEC has scheduled a closed meeting involving top officials, including Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries. The purpose? To review settlement and resolution claims, marking a pivotal moment in the Grayscale ETF saga.
This move comes in the wake of the recent deadline, which passed without an appeal against the court order from August 29, 2023, favouring the conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
Moreover, the U.S. Court of Appeals for the D.C. Circuit’s decision on October 23, 2023, ordering the SEC to revisit the Grayscale ETF proposal, emphasized the striking similarities between Grayscale’s application and the previously approved Bitcoin futures ETFs. The stage is set for a time-bound approval process, paving the way for the United States’ first-ever spot in Bitcoin ETF.
The Meeting’s Comprehensive Agenda
What’s on the Agenda? The agenda for the November 2, 2023 meeting is comprehensive, touching on various aspects of the SEC’s responsibilities. Topics of discussion include:
- Institution and settlement of injunctive actions.
- Institution and settlement of administrative proceedings.
- Resolution of litigation claims.
- Other matters related to examinations and enforcement proceedings.
It remains to be seen whether the SEC will seek an extension before making a decision. The passing of the October 13, 2023 deadline has already accelerated the timeline for the approval process, making it an exciting space to watch.
Grayscale’s Unique Advantage: Timing and Precedent
Will Grayscale Set the Precedent? While there is a prevailing market opinion that the SEC might approve all existing spot ETF filings simultaneously, Grayscale’s application has a unique advantage in terms of timing. The August 2023 court order, which dismissed the SEC’s arguments against the ETF filing, has positioned Grayscale ahead of the curve.
Notably, Mike Novogratz, CEO of Galaxy Digital, has expressed optimism about the Bitcoin spot ETF’s approval. He stated that it is expected to receive SEC approval sometime in 2023, and if this comes to pass, it could mark a significant milestone for the cryptocurrency industry.Read more:SEC Expected To Approve Spot Bitcoin ETF, Says Mike Novogratz
As the SEC reevaluates the Grayscale Bitcoin ETF application, the digital asset market holds its breath, awaiting the regulator’s verdict on this groundbreaking development.
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