- The SEC has made a surprising move regarding Grayscale’s Bitcoin ETF.
- The long-anticipated potential for spot Bitcoin ETF approval has emerged for 2024.
- High-stakes discussions have commenced between crypto giants and the regulatory authority.
On Friday, October 13, the U.S. Securities and Exchange Commission (SEC) clarified that they won’t contest the court ruling that permits Grayscale to transform its GBTC product into a spot Bitcoin ETF.
U.S. SEC to Reevaluate Grayscale’s Bitcoin ETF
This case has been a focal point of the crypto industry for quite some time, as it represents a ten-year quest by the crypto sector to introduce such financial instruments. The SEC’s decision not to challenge this ruling appears to pave the way for a reevaluation of Grayscale’s application.
Discussions between Grayscale and the SEC are scheduled to kick off next week, and we can anticipate a fresh response from the SEC within the coming fortnight. The possibility of the U.S. SEC taking this to the Supreme Court seems slim.
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Grayscale isn’t the only player in this game. There’s a lineup of major contenders looking to introduce a spot Bitcoin ETF, including industry giants like BlackRock, Valkyrie, WisdomTree, Ark Invest, and several others.
90% Odds for Spot Bitcoin ETF Approval by 2024
According to Bloomberg analysts Eric Balchunas and James Seyffart, there’s a solid 90% chance of a spot Bitcoin ETF getting the green light by January 2024, estimated based on recent adjustments to the spot Bitcoin ETF prospectuses submitted by Ark Invest and 21Shares.
The ongoing discussions between the SEC and the fund sponsors are part and parcel of launching a new ETF. However, these talks signal a significant stride in spot Bitcoin ETF applications, showing the SEC’s commitment to helping Ark’s proposal move forward. Worth noting is that Grayscale had pressed for approval of all ETFs simultaneously.
On the Flipside
- While the SEC’s decision not to contest the ruling appears as a positive step for Grayscale, regulatory scrutiny might intensify during the upcoming discussions.
- A one-size-fits-all approach may not be suitable for the diverse range of ETF applications in the market.
Why This Matters
The SEC’s decision not to challenge Grayscale’s transformation of GBTC into a Bitcoin ETF is a pivotal moment in the crypto industry’s quest for mainstream acceptance. This move sets a precedent and opens the door for other major players to introduce similar financial instruments, bringing us one step closer to witnessing the widespread adoption of cryptocurrencies.
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To learn more about Ripple and Grayscale’s impact on Gary Gensler’s stance, read here:
Ripple and Grayscale Triumphs Leave Gensler in Awkward Silence
To discover the latest developments in the FTX scandal, including a revealing secret recording with nervous laughter, delve into this article:
Secret Recording Unveils Nervous Laughter Amid FTX Scandal
