The Securities and Exchange Commission reportedly has no plans to appeal a recent court ruling in favor of Grayscale Investments. The ruling requires the SEC to review the company’s application for a spot Bitcoin (BTC) exchange-traded fund.
Benzinga (and others) reported that Reuters reported that the SEC would not appeal the Grayscale case. pic.twitter.com/yd9BBtRwv5
— Eric Balchunas (@EricBalchunas) October 13, 2023
The Oct. 13 statement highlights the SEC’s alleged decision not to appeal the D.C. Circuit Court of Appeals’ ruling. Report Reuters quoted “a source familiar with the matter as saying.”
Bloomberg analysts also predict that the SEC will not appeal to the Supreme Court, but stress that this does not necessarily mean that Grayscale’s application will be approved.
If the reports are true, the SEC will need to follow the court’s August order and review Grayscale’s application to change its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
According to Reuters, the appeals court is expected to issue a warrant outlining how the SEC should “enforce” its ruling.
Commenting on the developments, Bloomberg ETF analyst James Seyffart noted via X:
“I don’t think they will appeal to the Supreme Court either. Conversations between Grayscale and the SEC will begin next week. Hopefully next week or sometime next week we’ll have more information on next steps?”
1. The deal is done, I guess that’s accurate.No full seat application
2. No. I don’t think they will appeal to the Supreme Court either.
3. Conversations between Grayscale and the SEC will begin next week. Want to know more about next steps next week or at some point after next week? https://t.co/2EayzqeKGq
— James Seyff (@JSeyff) October 13, 2023
Looking ahead, Seyffart said that “we may know within the next week (or two weeks)” the deadline for the SEC to approve or reject Grayscale’s spot BTC ETF application.
If the SEC denies the application, Grayscale can appeal the decision, dragging out the process even longer.
related: Bitcoin price hits new $25,000 target as SEC decision day boosts GBTC
Currently, approximately seven spot Bitcoin ETF applications have been submitted to the SEC and are awaiting the regulator’s decision.
In another X post on October 13, Seyffart reiterated his view that spot Bitcoin ETF applications have a 90% chance of being approved in January 2024, specifically the application from Cathie Wood’s ARK Invest.
I get a lot of questions about my current thoughts on Spot #bitcoin ETFs over the past few weeks.This is the first part of the note I posted yesterday @ericbalciunas.
TLDR: Our views haven’t changed much pic.twitter.com/Htsi3n2XxV
— James Seyff (@JSeyff) October 13, 2023
Seyffart and Eric Balchunas, senior ETF analyst at Bloomberg, also previously said there was a 75% chance the application would be approved in 2023.
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