Crypto Stock Market - Grayscale Spot Bitcoin ETF Ruling - What Happens if SEC Doesn't Appeal?
What happens if SEC doesn’t appeal Grayscale spot Bitcoin ETF ruling?

SEC Deadline to Appeal Grayscale Decision

The United States Securities and Exchange Commission (SEC) is quickly approaching its deadline to appeal the court ruling in favor of Grayscale Investments, requiring the regulator to review the fund manager’s application for a spot Bitcoin (BTC) fund.

Although many analysts don’t think the SEC will attempt to appeal the court’s decision, they say there could still be ways for the SEC to delay approval of Grayscale’s spot Bitcoin ETF conversion. On Oct. 13, the SEC must either appeal the D.C. Circuit Court of Appeals decision to the U.S. Supreme Court, request the Appeals Court revisit its ruling, or follow the court’s August order and review Grayscale’s bid to change its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

In an Oct. 12 post on Bloomberg, ETF analyst Eric Balcunas responded to a crypto enthusiast’s question about the SEC’s potential appeal, saying an appeal was unlikely, though there could still be other hurdles.

The Crypto Stock Market and the SEC

James Seyffart, a Bloomberg ETF analyst, said that the SEC would have a “very difficult needle to thread” if it attempted to deny the GBTC application on new grounds. However, it could find ways to keep delaying the process.

In September, Ropes & Gray, a law firm, pointed out that the SEC could reject the GBTC application on a different basis, which could then be appealed to the D.C. Circuit. Additionally, the NYSE might need to make a new filing to list GBTC, which could take up to eight months for the SEC to make a decision.

Spot Bitcoin ETFs Inching Closer To Approval

At least seven spot Bitcoin ETF applications are currently in the process of being approved by the regulator. Despite being filed in 2023, the SEC has continuously delayed and pushed back the final approval deadlines, most of which are now set for March 2024 or later.

Grayscale’s spot Bitcoin ETF conversion application is the one to watch, as the SEC is likely to struggle to reject other applications if this one gets the green light. According to Bloomberg analysts, the likelihood of a spot Bitcoin ETF being approved this year is 75%, with a 95% chance of approval by the end of 2024.

The crypto community is eagerly awaiting the approval of these spot Bitcoin ETFs, as they could open up new opportunities for investing in the crypto stock market and crypto websites list. It could also lead to changes in crypto law and regulations in the United States.

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