The US Securities and Exchange Commission reportedly has no plans to appeal the recent court decision favoring Grayscale Investments. The ruling requires the SEC to review the company’s application for a spot Bitcoin (BTC) exchange-traded fund.
Benzinga (and others) report that Portal reports that the SEC will NOT appeal the Grayscale case. pic.twitter.com/yd9BBtRwv5
— Eric Balchunas (@EricBalchunas) October 13, 2023
The SEC’s alleged decision not to appeal the D.C. Circuit Court of Appeal ruling was highlighted in an Oct. 13 report by Portal that cited “a source familiar with the matter.”
Bloomberg analysts also expect that the SEC will not appeal to the Supreme Court, but emphasized that this does not necessarily mean that Grayscale’s application will be approved.
If the reports are true, the SEC must follow the court’s August order and review Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
According to Portal, the appeals court is expected to issue a mandate detailing how its ruling should be “implemented” by the SEC.
James Seyffart, analyst at Bloomberg ETF, commented on the developments via X as follows:
“I also don’t think they will appeal to the Supreme Court. The dialogue between Grayscale and the SEC is scheduled to begin next week. Are you hoping to hear more information about next steps next week or the week after?”
1. The deal is done. I guess if that’s true. No en banc motion
2. No. I also don’t think they will appeal to the Supreme Court.
3. Dialogue between Grayscale and SEC should begin next week. Are you hoping to hear more information about next steps next week or the week after? https://t.co/2EayzqeKGq
— James Seyffart (@JSeyff) October 13, 2023
Looking ahead, Seyffart said it’s likely that “we’ll find out in the next week (or two)” by when the SEC has to approve or reject Grayscale’s spot BTC ETF application.
If the SEC rejects the application, Grayscale could appeal the decision, which would drag out the process even longer.
Related: Bitcoin price gets new target of $25,000 as SEC decision day boosts GBTC
Currently, around seven spot Bitcoin ETF applications have been submitted to the SEC, awaiting a decision from the regulator.
In a separate previous
I’ve gotten a lot of questions about my current view of Spot #Bitcoin ETFs in the last few weeks. This is the first section of the note I published yesterday @EricBalchunas.
TLDR: Not much has changed in our view https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV
— James Seyffart (@JSeyff) October 13, 2023
Seyffart and Bloomberg senior ETF analyst Eric Balchunas had also previously noted that there was a 75% chance of an application being approved in 2023.
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