The U.S. Securities and Exchange Commission is quickly approaching a deadline to appeal a court decision in favor of Grayscale Investments, forcing the regulator to review the fund manager’s application for a spot Bitcoin (BTC) fund.
While many observers believe the securities regulator will not attempt to appeal the court’s ruling, analysts say there may still be ways for the SEC to delay approval of Grayscale’s spot Bitcoin ETF conversion.
On October 13, the SEC must appeal the D.C. Circuit Court of Appeals’ ruling to the U.S. Supreme Court, asking the appeals court to reexamine its decision or follow the court’s August order to review Grayscale’s changes to its Grayscale Bitcoin Trust (GBTC). Bid converted to spot Bitcoin ETF.
on October 12 postal In response to a question from User X, Bloomberg ETF analyst Eric Balcunas said an appeal was unlikely, but other obstacles could still arise.
“We don’t think an appeal is likely … but there’s always the possibility that something else could happen.”
Meanwhile, Bloomberg ETF analyst James Seyffart said in a separate article that the SEC is unlikely to try to deny on new grounds and that it would be “very difficult” but that it could “find ways to continue to delay.” .
Not officially. The SEC may try to deny on new grounds, but @ericbalciunas,Myself, @NYCStein, @SGJohnsson, @nategeraci Many others have said it. This would be a very difficult thing to do and we think unlikely. It seems to me that they can find ways to continue stalling.
— James Seyff (@JSeyff) October 12, 2023
Ropes & Gray Law Firm September Notes warn The GBTC application may be sent back to the SEC for review, giving the regulator the opportunity to reject the application on different grounds.
“In this case, the new denial itself may be subject to another appeal by GBTC to the D.C. Circuit,” the company wrote.
Ropes & Gray said another delay is that if the New York Stock Exchange must submit a new application to list GBTC, it could take up to eight months for the SEC to make a decision on the ETF.
related: House committee chair threatens SEC chairman with subpoena, but not over crypto
Currently, at least seven spot Bitcoin ETF applications are awaiting regulatory approval.
Although all applications were submitted to regulators in early 2023, they all faced delays and resistance from the SEC, with most final approval deadlines being March 2024 or later.
However, most eyes are on Grayscale’s spot Bitcoin ETF conversion application because if the SEC approves that application, the regulator may have a hard time finding reasons to reject other applications.
Bloomberg analysts updated their odds after Grayscale won the lawsuit, saying there is a 75% chance of a Bitcoin ETF spot being approved this year. By the end of 2024, the likelihood of approval will jump to 95%.
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