– Grayscale Investments sought for years to convert its GBTC, which has about $16.6 billion under management to an ETF.
– On August 29, the firm won lawsuit against the commission, with court determining that SEC’s denial was arbitrary and capricious.
– The SEC was given 45 days to appeal the ruling, in which case it would either go to the Supreme Court or an en banc panel review.
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission (SEC) in late August.The lawsuit started in October after the firm approached the D.C.Circuit Court pushing to have its Bitcoin Trust (GBTC) converted to an Exchange-traded fund (ETF).
Also Read:
Grayscale wins lawsuit against US SEC, Bitcoin price nears $28,000
US SEC faces a midnight Friday deadline
US SEC has until midnight of Friday, October 13 to challenge its loss in court to Grayscale Investments.It comes after the
August 29 win, when the court determined that SEC’s denial of Grayscale’s spot ETF proposal was “arbitrary and capricious.”
ORDERED and ADJUDGED that Grayscale’s petition for review be granted and the Commission’s order be vacated, in accordance with the opinion of the court filed herein this date.
This was considering the commission’s failure to explain why similar products are treated differently.With the victory, therefore the SEC was expected to review the rejection, with the potential to cause an approval of the first spot Bitcoin ETF in the US.
With this, the SEC was given 45 days to appeal the ruling.Beginning August 29, the deadline is today, October 13 at midnight.
Two options present for the commission, first, going to the Supreme Court or an en banc panel review (En banc is a rehearing of the case by the full court, not just a 3-judge panel), and second, rejecting the application on other grounds for yet another time.
Will Gensler’s— Timothy Peterson, CFA CAIA (@nsquaredcrypto)
[#SEC]file for an en banc appeal vs [@Grayscale] [#Bitcoin]ETF case by the Oct 13th deadline? This poll pertains just to the filing, not whether the appeal is granted.
(En banc is a rehearing of the case by the full court, not just a 3-judge panel).
[September 29, 2023]
Nevertheless, if the SEC does not appeal, it is nearly equivalent to an approval.Further, it could serve as a smoke signal from the SEC on whether a spot Bitcoin ETF could soon come to market.
Earlier,
Berenberg analysts indicated that the SEC could use alternative arguments to reject Grayscale spot Bitcoin ETF.According to the German Investment Bank’s analysts, the involvement of Coinbase in the spot Bitcoin ETF campaign could add to the regulator’s concerns while strengthening its arguments for opposition.
This comes as Coinbase is engaged in a lawsuit levied by the US SEC, battling charges of operating as an unregistered securities exchange.
Bitcoin Spot ETF could create a lot of sell pressure
Meanwhile, a YouTuber and analyst has anticipated a lot of sell pressure if the Bitcoin Spot ETF passes, with the current 17% Grayscale GBTC discount.The trust currently records around $16.6 billion in assets under management (AUM).However, t trades like a closed-end fund such that the price can change significantly from the value of its underlying assets.
With Grayscale currently holding around 636896 BTC (approximately $17.082 billion at current rates), it typically has more Bitcoin than its actual market value ($16.6 billion), hence the discount.
The Bitcoin Spot ETF could create a lot of sell pressure.— Crypto Rover (@rovercrc)
Here is why:
If you’re looking to speculate on the impending Bitcoin Spot ETF approval, a logical move would be to invest in
[$GBTC].Currently, you can acquire Bitcoin at a 17% discount.
The fund has more Bitcoin than…
[pic.twitter.com/FgQ3T2ABuK] [October 12, 2023]
If Grayscale’s ETF is approved, there is potential to offload it for a profit margin.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.
FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Breaking: Beluga Protocol exploited on Arbitrum for approximately 60 ETH
Beluga Protocol, the protocol behind Beluga decentralized exchange, has been exploited on Arbitrum for approximately 59 ETH ($91,037 at current rates), blockchain security firm PeckShield reports.The exploiter initially funded 0.1 ETH from OKX exchange.
More Cryptocurrencies news
Turn off Solana and win $400,000 – Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but the network does not come without its fair share of issues.While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
More Solana News
Grayscale vs.SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August.The lawsuit started in October after the firm approached the D.C.
Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
More Cryptocurrencies news
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for traders who use the scalp technique, buying and selling the asset within a short period to make small profits.With traders relying on LOOM’s price fluctuations for quick entry and exit trades, extra caution is required as signs point to manipulation.
More Loom News
Bitcoin: BTC bearish fractal forecasts correction to $25,000
Bitcoin (BTC) price hovers around $27,600 and shows no directional bias on the daily chart.Liquidity pockets are present in both directions, leaving traders guessing where BTC will go next.
Read full analysis.
