The CEO of Grayscale Investments, Michael Sonnenshein, hailed the latest US appeals court judgment as an exhilarating victory in an exclusive interview with “Bloomberg Markets.” In addition to being a success for Grayscale, the court’s decision to reverse the Securities and Exchange Commission’s (SEC) ban on the planned spot Bitcoin exchange-traded fund (ETF) is a turning point for the world of digital assets. This ground-breaking breakthrough has reignited the long-awaited prospect of witnessing the debut of the first-ever US ETF directly linked to Bitcoin.
Sonnenshein was excited but also seemed cautiously optimistic about Grayscale’s future. He said we must wait until the court’s mandate specifies the ultimate operational processes. The question is whether or not an en banc hearing, which would involve all 17 judges instead of the original selection of three, will take place during the upcoming 45-day window. Unmistakable joy could be heard in his voice, echoing the expectation of a significant change in the industry’s course.
The triumph has caused a market ripple, sending GBTC shares soaring by an astonishing 17% alongside Bitcoin’s 6% increase. However, as the midweek slump set in, GBTC’s shares experienced a slight 4% decline, which, according to Bloomberg statistics, revealed a discount of almost 18% to its underlying assets. This was seen as a market sentiment signal by James Seyffart, an astute analyst at Bloomberg Intelligence, as a sign of increased confidence in a conversion, but received with residual doubt.
Even if the judgement has broad repercussions, they are still developing. The SEC’s response to the six pending spot Bitcoin ETF proposals, including those from titans of the sector like Bitwise, BlackRock, Fidelity, and Invesco, is a topic of intense interest. The SEC’s defence of prospective delays is under even more scrutiny due to the latest court judgment, raising interest among the investment community.
Sonnenshein reflected on the long path, saying, “Yesterday marked the culmination of over a year’s worth of legal battles.” This is not only a victory for Grayscale and its investors; it also shows how resilient the crypto and investment communities are. Sonnenshein was unwavering in his conviction that the decision demonstrates cryptocurrency’s steadfast status as a legitimate asset class.
There are tremors of anticipation throughout the sector due to this landmark decision’s seismic impact on the US market for Bitcoin spot ETFs. The likelihood of a Bitcoin spot ETF materializing has been increased by renowned Bloomberg senior ETF analysts Eric Balchunas and James Seyffart to 75% this year and an astounding 95% by the end of 2024. The court’s verdict was solid and definitive, giving the SEC little space for manoeuvre and raising the likelihood of a Bitcoin ETF to previously unheard-of levels.
Intriguingly, the focus now shifts to how the SEC will handle the six upcoming spot Bitcoin ETFs; judgments are expected tomorrow. The competitors include businesses like Bitwise, BlackRock, Fidelity, and Invesco. The court’s unequivocal denial of earlier SEC worries has left room for conjecture: What justification will the SEC now offer? A surprising approval might be approaching.
Bitcoin, which is still holding strong and is currently trading at $27,280, represents the industry’s unwavering energy and the alluring possibility of an ETF revolution.
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