Following Ripple’s successful appeal last month, Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), has won another significant victory for the cryptocurrency sector before the SEC, broker Bernstein reported in a research report on Tuesday.The SEC must reconsider its decision to deny Grayscale’s request to have the GBTC converted into an exchange-traded fund (ETF), according to a federal court’s ruling on Tuesday.
According to analysts led by Gautam Chhugani, the decision “likely clears the path for a spot bitcoin ETF” and raises the possibility that the SEC may accept all of the pending applications at once.ETFs monitor the performance of an underlying asset and are exchanged on an exchange much like stocks.Because they enable market participants to participate in cryptocurrencies without having to own the underlying digital assets directly, they are becoming more and more popular.The court’s ruling prevents the conversion of the GBTC product into an ETF right away, but it “provides a fair basis for Grayscale to be treated in line with other Bitcoin ETF applicants,” according to the newspaper.
The first evaluation is anticipated to be completed next week, and the final SEC review is anticipated to be completed in the early months of 2024, according to the memo.In a previous statement, Bernstein predicted that in two to three years, the spot bitcoin ETF market will be significant and represent 10% of the total value of bitcoin.