SEC vs Grayscale Case Captured: ETF’s Final Verdict to Come In

SEC vs Grayscale Case Captured: ETF’s Final Verdict to Come In
  • The court is set to rule by Monday that the SEC scrap its rejection of Grayscale's spot Bitcoin ETF application.
  • A federal court will make a rule to formalize Grayscale's victory over the US Securities and Exchange Commission on the lawsuit for a spot in Bitcoin ETF application.
  • SEC is expected to follow the court ruling; however, a specific timeline is not given as to the next steps in the application. 

Grayscale's Victory Over SEC to be Announced Soon

Grayscale Investments, as well as the entire crypto community, is eagerly awaiting the decision of a federal court in a few days. This is to formally acknowledge the defeat of the U.S. Securities and Exchange Commission (SEC).

Prior to this announcement, about two months ago, there was a dispute between both parties over a spot Bitcoin exchange-traded fund (ETF). The decision of the federal court will automatically close the case, giving a legal ruling and setting Grayscale's win in place.

According to procedures used in this type of case, the D.C. Circuit Court of Appeals is usually given seven days to close the books on this case. This is because, last week, the SEC refused to appeal the court's ruling that the agency must scrap its rejection of Grayscale's ETF application.

This seven-day deadline ends on Friday, and there are a number of possibilities for what comes next. The court may decide to terminate the case without further comments, or it could issue some other directives to the SEC on what comes next.

The regulator could give in and approve this and other ETF applications like those from other top-leading financial companies like BlackRock and Fidelity.

The crypto industry generally expects the SEC to allow the new ETFs, though for the timing, it could end up being approved later this year or sometime in 2024; this has, however, remained uncertain.

If approved, Grayscale would convert its Bitcoin Trust (GBTC) to an exchange-traded product. The company plans to list that on NYSE Arca, where the ETF would become widely available to investors.

The court's final action could come on the deadline day of Friday, although it even be ruled on Monday because of the deadline, which comes to end at late midnight on Friday, as revealed by an insider with the case.

"Grayscale remains operationally ready to convert GBTC to an ETF, and on behalf of GBTC's investors, we look forward to working collaboratively and expeditiously with the SEC on these matters," said a statement released by spokeswoman Jennifer Rosenthal.

Brace Yourself for..

Before the final ruling is made by the federal court concerning Grayscale and the ETF application, the fate of Grayscale's spot Bitcoin ETF application hangs in the balance.

Following the SEC's loss in the legal battle, it is not clear if the agency will consider making an appeal to its case or follow through with the court's ruling.

While the crypto community awaits the court's decision to officially endorse Grayscale's victory over the SEC, the timeline for the next steps in the application remains unclear.

Meanwhile, the entire crypto industry watches with anxiety what comes next, as the SEC might consider rejecting the ruling for different reasons best known to them. The SEC can also decide to give a green light to Grayscale and all other ETF applications.

With the crypto community and market eagerly awaiting the approval of ETF, the timing of this decision will be critical, potentially paving the way for a significant shift in the market.

Grayscale, fully prepared for the ETF conversion, remains committed to collaborating with the SEC, with the outcome poised to impact the crypto landscape.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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