The U.S. Securities and Exchange Commission reportedly has no plans to appeal the recent court decision that favored Grayscale Investments. The ruling requires the SEC to review the company’s spot bitcoin (btc) exchange-traded fund (ETF) application.
Benzinga (and others) report that Reuters reports that the SEC will NOT appeal the Grayscale case. pic.twitter.com/yd9BBtRwv5
– Eric Balchunas (@EricBalchunas) October 13, 2023
The SEC’s alleged decision not to appeal the ruling by the U.S. Court of Appeals for the District of Columbia Circuit was highlighted in an Oct. 13 report. bitcoin-etf-source-2023-10-13/” target=”_blank” rel=”noopener nofollow”>report of Reuters, which cited “a source familiar with the matter.”
Bloomberg analysts also expect the SEC will not appeal to the Supreme Court, but stressed that this does not necessarily mean Grayscale’s application will be approved.
If the reports are true, the SEC will need to follow the August court order and review Grayscale’s request to convert its Grayscale bitcoin Trust into a bitcoin spot ETF.
According to Reuters, the appeals court is expected to issue an order specifically outlining how the SEC must “execute” its ruling.
Commenting on the developments, Bloomberg ETF analyst James Seyffart stated via X (formerly Twitter) that:
“I also don’t think they will appeal to the Supreme Court. Dialogue between Grayscale and the SEC should begin next week. Do you expect to learn more about next steps next week or the week after?
1. Deal done, I guess if this is accurate. Without bank application
2. No. I don’t think they will appeal to the Supreme Court either.
3. Dialogue between Grayscale and the SEC should begin next week. Do you expect to learn more about next steps next week or the week after? https://t.co/2EayzqeKGq
-James Seyffart (@JSeyff) October 13, 2023
Going forward, Seyffart suggested that we will likely “find out in the next week (or two)” what the deadline is for the SEC to approve or reject Grayscale’s spot bitcoin ETF application.
If the SEC were to deny the request, Grayscale could appeal that decision, further delaying the process.
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Around seven one-time bitcoin ETF applications have been filed with the SEC and are awaiting a decision from the regulator.
In a separate previous
I’ve received a lot of questions about my current vision for Spot. bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF for the last two weeks. This is the first section of the note that I published yesterday with @EricBalchunas.
TLDR: Our opinion hasn’t changed much https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV
-James Seyffart (@JSeyff) October 13, 2023
Seyffart and Bloomberg senior ETF analyst Eric Balchunas also previously suggested a 75% chance of an application being approved in 2023.
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