- Grayscale seeks approval to convert its Bitcoin Trust to an ETF in court.
- The firm has sparked speculations of a favorable outcome with a new job listing.
- Experts believe a ruling in the case is close.
In June 2022, Grayscale dragged the SEC to court over the denial of its application to convert its Bitcoin Trust (GBTC) to a spot exchange-traded fund (ETF).
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Amid this legal battle, a recent job listing from the firm has stoked speculations of a favorable ruling that could usher in the first spot Bitcoin ETF in the U.S.
Grayscale Case Against the SEC Decided?
In a tweet on Thursday, August 17, Grayscale revealed that it was looking for a senior associate to join its ETF team.
Per the job summary, the senior associate would assist in all stages of Grayscale’s ETF product life cycle, including planning, listing, and “post launch support.”
The tweet from Grayscale has sparked a flurry of excited reactions as many speculate that the firm believes the court is about to rule in favor of its spot Bitcoin ETF.
These reactions come after experts on Monday, August 14, argued that the decision in the Grayscale case was likely to come out this week, citing an observed 160-day cycle for cases with oral arguments in March influenced by changes to district court law clerks.
If approved, converting GBTC to an ETF will close the Trust’s discount to the net asset value, a big win for investors. At the same time, many believe that the advent of a spot Bitcoin ETF would see the inflow of trillions of institutional dollars seeking Bitcoin exposure.
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According to YCharts data, GBTC is trading at a 25.79% discount to Bitcoin’s mainstream value at the time of writing.
On the Flipside
- The court is yet to issue a ruling on Grayscale’s appeal of the SEC’s decision.
- There are concerns over the financial health of Grayscale’s parent company Digital Currency Group (DCG) which is involved in a $1 billion tussle with Gemini.
Why This Matters
The outcome of the Grayscale case against the SEC could have significant implications for Grayscale and Bitcoin investors in general, with many predicting a parabolic run for the crypto asset’s price if a spot ETF is approved.
Read this to learn more about Grayscale’s options if it fails to convert its Bitcoin Trust to an ETF:
Grayscale Might Consider Tender Offer If It Fails to Convert GBTC Fund into ETF
Binance and the SEC have been referred to a magistrate judge to resolve a fact-finding dispute. Find out more:
Binance, SEC Near Compromise? Protective Order Sent to Magistrate
