Should the reports hold true, the Securities and Exchange Commission (SEC) would find itself in the position of reviewing and adjudicating Grayscale’s application for a spot Bitcoin ETF. Conversely, if the application were to face denial, Grayscale would retain the option to contest the verdict.
Recent intel indicates that the United States Securities and Exchange Commission has no intentions of challenging the recent judicial ruling favoring Grayscale Investments. This legal mandate necessitates the SEC’s scrutiny of the company’s spot Bitcoin endeavors.
The purported decision of the SEC to forgo challenging the U.S. Court of Appeals for the District of Columbia Circuit’s ruling was spotlighted in an October 13 report by Reuters, citing an anonymous insider. Bloomberg analysts, while anticipating the SEC’s non-appeal stance towards the Supreme Court, underscored that this doesn’t guarantee an endorsement of Grayscale’s application.
If the speculations are valid, the SEC finds itself obligated to comply with the court’s directive from August, entailing a meticulous review of Grayscale’s bid to transform its Grayscale Bitcoin Trust into a spot Bitcoin ETF. As per Reuters, the appeals court is expected to issue a mandate explicitly delineating how the SEC should “execute” its verdict.
Commenting on these unfolding events, Bloomberg’s ETF analyst James Seyffart expressed via X (formerly Twitter):
“I am skeptical about a Supreme Court appeal. Expecting dialogue between Grayscale and the SEC to commence next week. Anxiously awaiting insights into the forthcoming steps—possibly in the next week or the week that ensues.”
Looking ahead, Seyffart posits that clarity on the SEC’s deadline for sanctioning or negating Grayscale’s spot Bitcoin ETF application is likely to emerge in the coming week or two. Should the SEC reject the application, Grayscale retains the option to contest, elongating the procedural timeline.
Approximately seven spot Bitcoin ETF applications rest before the SEC, awaiting regulatory deliberation. In an earlier X post on October 13, Seyffart reiterated a 90% likelihood of a spot Bitcoin ETF application gaining approval in January 2024, particularly referencing Cathie Wood’s ARK Invest application. Seyffart and Bloomberg’s senior ETF analyst, Eric Balchunas, had previously suggested a 75% likelihood of an approval in 2023.