After the United States Securities and Exchange Commission (SEC) has announced that it will not appeal the court’s recent decision regarding Grayscale Investments LLC’s proposal to convert its Bitcoin Trust into a Bitcoin Exchange Traded Fund (ETF), the next steps to be followed by the renowned investment company have been revealed.
This news marks a major milestone in the approval process for Bitcoin ETFs in the United States and has triggered a surge in the price of Bitcoin.
The information comes directly from Eleanor Terrett, a Fox Business journalist, who obtained exclusive statements from Grayscale Investments LLC. In its statement, Grayscale noted:
“The Federal Rules of Appellate Procedure has concluded its 45-day period to request reconsideration. The court will issue its final order within seven calendar days. The Grayscale team is operational ready to convert GBTC into an ETF as soon as the SEC approves, and we look forward to sharing more information as soon as possible.“
“The Federal Rules of Appellate Procedure’s 45-day period to seek rehearing has now passed. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains…
— Eleanor Terrett (@EleanorTerrett) October 15, 2023
The process began when Grayscale filed an application with the SEC to convert its Bitcoin Trust into a Spot Bitcoin ETF.
The SEC initially rejected this request, leading Grayscale to challenge the decision in court. In late August, the court issued its verdict, supporting Grayscale’s position and arguing that the SEC had made a mistake in rejecting the application.
The deadline for the SEC to appeal this decision was October 13, 2023, and the SEC has decided not to pursue an appeal. This decision has triggered a rise in investor confidence and a rebound in the price of Bitcoin, which currently sits at $28,000 having risen 1% following the news.
Now the court must issue its final decision during the next week, which is sparking interest and speculation around the market, where expectations are generated of seeing the effects of this conversion in the short term.
The crypto community and investors have been closely following this case, as it could open the doors to the approval of other Bitcoin ETFs in the future. Grayscale’s victory in court and the SEC’s decision not to appeal have revived hopes that the United States will finally have its first spot Bitcoin ETF.
Following confirmation that the SEC will not appeal the decision, Grayscale will contact the SEC to begin the process of converting GBTC into an ETF. This dialogue will be essential to address the details and regulatory requirements necessary for approval.
This includes providing documentation and meeting specific standards for operating as an ETF. Additionally, ongoing dialogue with the SEC is required to address any concerns and ensure all regulations are met before the ETF is permitted to launch.
In response to this news, Bloomberg Intelligence analyst James Seyffart commented:
What’s next? “Progress on the Grayscale conversion-front brings further clarity to the ETF-approval process, which has remained opaque to industry watchers as many were unsure about how the SEC would handle the asset-manager’s proceedings” —@VildanaHajric https://t.co/kKcvWhmoJu
— James Seyffart (@JSeyff) October 14, 2023
“We expect dialogue between Grayscale and the SEC to begin next week. Progress on Grayscale’s conversion provides further clarity to the ETF approval process.“
Seyffart also highlighted that Grayscale’s performance has exceeded expectations, which has been well received by investors.
NO ONE WANTS TO STAY OUT
Despite Grayscale’s victory, the competition for SEC approval in the Bitcoin ETF space is far from over. Other contenders besides Grayscale are vying for approval from the United States Securities and Exchange Commission (SEC) to launch their own Bitcoin ETFs.
Among the contenders are financial giants such as BlackRock, Fidelity, ARK Invest and Invesco, all eager to enter the Bitcoin ETF market and take advantage of the steadily growing interest in cryptocurrencies.
This competition promises an exciting race to be the first to offer a Bitcoin ETF in the United States and meet growing investor demand for cryptocurrency-related products.
At the moment, the approval of multiple Bitcoin ETFs is expected to create a highly competitive environment among the different players in the market.
Once SEC approval is obtained, Grayscale will embark on the preparation phase for the launch of the Spot Bitcoin ETF.
Grayscale will keep its investors informed about the progress of converting GBTC into a Bitcoin ETF. It is expected to issue regular press releases and updates to provide transparency and keep its investors abreast of developments.