The United States Securities and Exchange Commission (SEC) would not appeal a court decision backing the conversion of Grayscale’s Bitcoin Trust (GBTC) product to a bitcoin spot exchange-traded fund (ETF), people familiar with the issue stated late Friday. The move might as well mean that the US regulator is keen to approve the first Bitcoin ETF after antagonizing it for years.
With the SEC failing to dispute the decision, the District of Columbia Court of Appeals in Washington can now close the case and issue a mandate on how the SEC would execute its judgment. The lack of appeal also allows Grayscale to start discussions with the top US regulator on the immediate conversion of its GBTC to a spot bitcoin ETF product.
Finally?
Grayscale’s year-long battle with the SEC could be over with the latest development. The digital currency asset manager appealed the regulator’s decision not to approve the conversion of its GBTC product to a spot bitcoin ETF in June, citing “a lack of fair treatment for Bitcoin investment vehicles.”
As the SEC has done to other spot bitcoin ETF filings, it rejected Grayscale’s application a few days later, stating that a bitcoin spot ETF product does not offer US investors protection from market manipulation and volatility.
High Chances of Multiple Approvals
The likes of BlackRock, Fidelity, and WisdomTree would all be looking out for the outcome of the case, as according to popular opinion, the SEC would prefer to approve multiple spot bitcoin ETFs than just Grayscale’s. Ark Invest’s Cathie Wood and Bloomberg’s James Seyffart agreed to the notion back in August, noting that the SEC would approve more than one at a time.
Following the decision of the SEC not to appeal, Bitcoin moved above $27,000 before relinquishing some of its gains afterward.
