Will SEC Finally Approve Grayscale Bitcoin ETF?
Grayscale Bitcoin SEC Cover: It has been a long struggle for Grayscale in its efforts to convert the Bitcoin fund into a spot-based ETF. In June 2022, the US Securities and Exchanges Commission (SEC) rejected Grayscale’s application to convert to a spot Bitcoin ETF. Following this, the company waged a legal battle against the regulatory agency. In the context of the SEC’s ongoing actions against crypto-based businesses, the case could prove crucial in driving market sentiment in favor of cryptocurrencies.
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Grayscale management expects a decision at the moment Bitcoin ETF decision by the fall of 2023. It appears that the company has now placed all its bets on the lawsuit against the SEC. With Grayscale Bitcoin trust (GBTC) being the largest such Bitcoin trust in the world, even a minor outcome in favor of Grayscale could come out as a big boost for the crypto community. The SEC Grayscale case will soon get underway as arguments are set to be heard in court starting in March 2023.
What to expect from the SEC case in shades of gray
Speaking to Yahoo News on Monday, Grayscale CEO Michael Sonnenshein talked about the company’s action plan in the case. The company will base its argument on saying that spot-based Bitcoin ETFs will offer greater investment security and regulatory oversight than futures-based ETFs. In light of the liquidity problems with its parent company Digital Currency Group (DCG), the company recently said it would consider a tender for up to 20% of its shares. In response to this proposal in the event of the court ruling against the approval of the Grayscale spot Bitcoin ETF, Sonnenshein said that the tender offer would not really be an optimal solution overall.
The CEO said that a lot of influence came out of the crypto ecosystem in the last two months. He also said that the upcoming Ethereum Shanghai upgrade and Bitcoin halving in 2024 could act as major catalysts for the cryptocurrency market.
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