In a significant development, the US Securities and Exchange Commission (SEC) decided not to appeal a recent court decision favoring Grayscale Investments’ bitcoin ETF conversion plans, according to a bitcoin-etf-source-2023-10-13/”>report by Reuters. The decision, which comes after a legal battle and months of anticipation, may signal a shift in the regulatory landscape toward approval of a spot bitcoin ETF by the SEC.
The decision, according to a confidential source close to the matter, was made internally at the SEC, following a federal court verdict that allowed Grayscale to convert its Grayscale bitcoin Trust (GBTC) into a spot bitcoin ETF. This decision by the SEC not to file an appeal marks a major milestone in the ongoing effort to introduce a bitcoin exchange-traded fund to the US market.
Grayscale’s victory in court was seen as a crucial test case as it could set a precedent for other bitcoin ETF applicants seeking to convert their products into ETFs. The move towards a bitcoin ETF has been highly anticipated in the space, as it could provide institutional investors with an easier way to gain exposure to btc.
Grayscale bitcoin Trust is currently one of the most popular investment vehicles for bitcoin exposure, but its structure differs significantly from a traditional ETF. A successful conversion to a spot bitcoin ETF would simplify the investment process and make it more accessible to a wider range of investors.
While many in the bitcoin community celebrate the SEC’s decision not to appeal, it is worth noting that this does not equate to full approval of Grayscale’s conversion proposal. The regulatory body will continue to evaluate the proposal within its existing processes, ensuring it complies with securities laws and investor protection standards.
