Title: US SEC Will Not Appeal Court Decision on Grayscale Investments, Must Review Bitcoin ETF Application
In a recent development, the United States Securities and Exchange Commission (SEC) has decided not to appeal a court ruling favoring Grayscale Investments. The ruling mandates the SEC to review Grayscale’s spot Bitcoin exchange-traded fund (ETF) application, signaling a potential breakthrough for the cryptocurrency industry.
Bloomberg analysts suggest that the SEC’s decision not to appeal to the Supreme Court would not automatically guarantee approval for Grayscale’s application. However, it sets the stage for the SEC to comply with the court’s order and conduct a thorough review of Grayscale’s proposal to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF.
The appeals court is expected to provide a mandate outlining the procedures the SEC must follow to execute its ruling. Dialogue between Grayscale and the SEC is scheduled to commence next week, with further information on the next steps expected to emerge soon.
One of the essential aspects that will likely unfold in the coming weeks is the determination of the deadline for the SEC to either approve or deny Grayscale’s spot Bitcoin ETF application. This critical decision is anticipated to be finalized within the next week or two.
It is worth noting that if the SEC were to deny the application, Grayscale would have the option to appeal the decision, potentially prolonging the process even further. Given that seven other spot Bitcoin ETF applications are currently awaiting the SEC’s decision, the outcome of Grayscale’s application could set a precedent for the broader cryptocurrency industry.
Bloomberg analyst James Seyffart believes that there is a high likelihood (90%) of a spot Bitcoin ETF application being approved in January 2024, specifically highlighting Cathie Wood’s ARK Invest application. Seyffart, along with Eric Balchunas, had previously indicated a 75% chance of approval for a Bitcoin ETF application in 2023.
In light of these developments, Irina Heaver, a crypto lawyer, sheds light on an unsettling aspect of the crypto industry. She discusses receiving death threats and predicts an increase in legal battles in the cryptocurrency space, underscoring the challenges faced by stakeholders in this rapidly evolving sector.
Overall, with the SEC’s decision not to appeal the court ruling, the road to potential approval for Grayscale’s spot Bitcoin ETF application appears clearer. However, the ultimate decision and the subsequent impact on the broader cryptocurrency industry remain uncertain, necessitating continued attention and analysis in the weeks ahead.
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