The U.S. Securities and Exchange Commission (SEC) has reportedly decided not to appeal the court’s recent decision regarding a case between the federal securities regulator and Grayscale Investments.
In a high-profile ruling on August 29, the US Court of Appeals for the District of Columbia granted the prominent asset manager’s request to convert his Grayscale bitcoin Trust into a bitcoin exchange-traded fund (ETF) after an initial denial from the SEC.
While there may have been speculation that the US regulator could challenge this ruling, a bitcoin-etf-source-2023-10-13/” target=”_blank” rel=”noopener nofollow”>Friday report by Reuters claims that the SEC would not take that route, according to a source close to the matter.
SEC Agrees to Review Grayscale ETF Application
According to the report cited above, the SEC is now mandated to review Grayscale’s application to convert its GBTC fund into a spot bitcoin ETF. However, it should be noted that this development does not give rise to an automatic approval of such an ETF offering.
Additionally, the US appeals court is still expected to issue a directive outlining how its recent ruling should be implemented between the parties involved.
Commenting on this report, Bloomberg analyst James Seyffart aware at X, expressing agreement with the idea that the SEC will not press for an appeal in this case.
Additionally, Seyffart said there could be more development on such an ETF application, as discussions between Grayscale and the SEC will begin next week.
Bloomberg Analysts Remain Positive on Timely bitcoin ETF Approval
In other publish in X On Friday, James Seyffart, working with colleague Eric Balchunas, emphasized his positive stance on the outcome of the ongoing US bitcoin spot ETF saga.
Related Reading: bitcoin Spot ETF: Bloomberg Analyst Reassesses Odds After Ark Delay
In August, Bloomberg ETF analyst had estimated the chances of approval of a spot bitcoin ETF at 75% in 2023 and 90% by the end of 2024.
However, in Friday’s release both analysts maintained this optimism regarding recent changes in the joint ETF filing by Ark Invest and 21 stocks.
I’ve received a lot of questions about my current vision for Spot. bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#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 Balchunas observed that the ARK 21Shares bitcoin ETF Filing Updated with 5 New Pagesa move that marked a “constructive conversation” with the SEC, which typically indicates that an investment fund could soon gain approval.
Based on this development, Bloomberg analysts stated that there is a 90% chance that the US regulator will approve the ARK 21shares bitcoin ETF offering before its final deadline of January 10, 2024.
In the past, the SEC has rejected multiple bitcoin spot ETF filings, highlighting the applicant’s inability to show how it intends to protect investors from market manipulation.
Many asset managers have now found an answer to this requirement, with some, including Ark/21Shares, opting for a co-surveillance agreement with the largest US cryptocurrency exchange, Coinbase.
Total crypto market valued at $1.03 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com.
Featured image by Buisnessday NG, chart by Tradingview
