In the event that this is accurate, Grayscale’s application for a spot Bitcoin ETF must be reviewed and approved by the SEC. Grayscale may appeal the ruling if it is rejected.
The latest ruling by the court that favoured Grayscale Investments is said to not be being appealed by the United States Securities and Exchange Commission. The decision mandates that the SEC examine the company’s application for an exchange-traded fund (ETF) that tracks spot prices in Bitcoin.
An Oct. 13 Reuters report, citing “a source familiar with the matter,” highlighted the SEC’s purported decision not to appeal the U.S. Court of Appeals for the District of Columbia Circuit order.
Analysts at Bloomberg also anticipate that the SEC won’t file an appeal with the Supreme Court, but they stressed that this doesn’t guarantee that Grayscale’s application would be granted.
If the rumours are accurate, Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF will need to be reviewed by the SEC in accordance with the court’s August ruling.
Reuters reports that the appeals court is anticipated to issue a mandate that details precisely how the SEC is to “execute” its order.
James Seyffart, an analyst with Bloomberg ETFs, commented on the events through X (previously Twitter) and said:
“I don’t think they’ll file an appeal with the Supreme Court either. Next week, Grayscale and SEC should start speaking. I’m hoping to get more details on the next stages sometime the next week or next week after
Going forward, Seyffart predicted that “we will find out in the next week (or two)” the deadline by which the SEC will decide whether to accept or reject Grayscale’s application for a spot Bitcoin ETF. Grayscale could file an appeal if the SEC rejects the application, which would further delay the proceedings.
The SEC has received about seven spot Bitcoin ETF applications, all of which are pending the regulator’s decision.
Seyffart restated his opinion that there is a 90% likelihood that a spot Bitcoin ETF application—more precisely, the one from Cathie Wood’s ARK Invest—will be granted in January 2024 in a different X post recently . In the past, Seyffart and Eric Balchunas, senior ETF analyst at Bloomberg, had also projected a 75% possibility of approval for an application in 2023.