Grayscale’s Court Victory: SEC’s Next Move and the Future of Bitcoin ETFs Revealed!

  • Grayscale Investments emerges victorious in a legal battle against the Securities and Exchange Commission (SEC), thereby exerting an influence on applications for Bitcoin Exchange-Traded Funds (ETFs).
  • The price of Bitcoin experienced a notable increase of 5.4% following Grayscale’s success, which has had a significant impact on the market by reducing the discount on GBTC.
  • The court expresses disapproval of the Securities and Exchange Commission’s (SEC) lack of consistency in its approach towards Bitcoin exchange-traded funds (ETFs) based on spot and futures markets.
  • The proposed Bitcoin ETF by Grayscale exhibits similarities to the already permitted Bitcoin futures ETFs, hence bolstering the rationale put out by the court.
  • The Securities and Exchange Commission (SEC) has the ability to initiate a request for a rehearing within a period of 45 days. Following this, a final mandate and corresponding directions will be given.
  • According to researchers at Bloomberg ETF, there is a projected likelihood of 75% for the approval of a spot Bitcoin ETF before the conclusion of 2021.
  • The probability of approval is projected to rise to 95% by the conclusion of 2024, signifying a discernible upward trend.
  • Several corporations are currently awaiting decisions from the Securities and Exchange Commission (SEC) about their applications. However, experts in the field foresee the possibility of delays in these determinations.
  • Potential delays could potentially arise as a result of a recent court order; nevertheless, there is a possibility that the Securities and Exchange Commission (SEC) may exhibit flexibility and indicate a near launch.
  • The Securities and Exchange Commission (SEC) has a range of potential courses of action regarding the conversion of Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). These options encompass approving the conversion, rejecting it based on numerous grounds, or opting to close down currently operating futures-based Bitcoin ETFs.


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