The U.S. Securities and Exchange Commission will soon face a deadline to appeal a court decision that ruled in favor of Grayscale Investments, forcing the regulator to review the fund manager’s application for a Spot Bitcoin (BTC) fund. Ru.
Although many observers believe securities regulators will not seek to appeal the court’s decision, analysts say there are still ways the SEC could delay approval of Grayscale’s Spot Bitcoin ETF conversion. states that it is possible.
On October 13, the SEC decided to appeal the D.C. Circuit Court of Appeals’ decision to the U.S. Supreme Court, ask the appellate court to reconsider the decision, or follow the court’s August order that Grayscale Bitcoin Either consider Grayscale’s bid to change the trust (GBTC). Spot Bitcoin ETF.
October 12th post Bloomberg ETF analyst Eric Balkunas said in response to a question from an X user that an appeal is unlikely, but other hurdles may still exist.
“We think [an] Appeal is unlikely […] But there’s always a chance that something else will happen. ”
Meanwhile, Bloomberg ETF analyst James Seifert said in a separate post that the SEC is unlikely to attempt a denial on new grounds and that “it’s very difficult to thread the needle,” but that “there are ways to keep delaying it.” He said there is a possibility that he will find it.
It’s not official. The SEC may attempt a denial on new grounds, but @EricBalchunamyself, @NYCStein, @SGJohnsson, @NateGeraci said many others. It would be very difficult to thread the needle and we think it is unlikely. They can find a way to stay late IMO.
— James Seyffert (@JSeyff) October 12, 2023
September memo from law firm Ropes & Gray warned The GBTC application may be sent back to the SEC for review, giving regulators another opportunity to reject the application on other grounds.
“In this scenario, the new denial itself could be subject to GBTC’s re-appeal to the D.C. Circuit,” the company wrote.
Another delay scenario, according to Ropes & Gray, is if the New York Stock Exchange has to file a new application to list GBTC. In that case, it could take up to eight months for the SEC to reach a decision regarding the ETF.
Related: House committee chair threatens SEC chair with subpoena, but it’s not about virtual currency
Currently, at least seven spot Bitcoin ETF applications are pending regulatory approval.
Despite all being filed with regulators in early 2023, all have faced delays and pushback from the SEC, with most final approval deadlines around March 2024 or later.
But most of the attention is on Grayscale’s Spot Bitcoin ETF exchange application, as regulators may have a hard time finding reasons to deny other applications if the SEC approves.
There is a 75% chance that a spot Bitcoin ETF will be approved this year, according to Bloomberg analysts who updated their odds after Grayscale’s court victory. The chance of approval by the end of 2024 jumps to 95%.
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