The Securities and Exchange Commission (SEC) is on the brink of a crucial decision regarding Grayscale's bid to convert its GBTC into a Bitcoin spot ETF, a potential first for the US. This development comes as the deadline for the SEC to appeal a court order favoring the conversion approaches today, Friday. The US District of Columbia Court of Appeals previously deemed the SEC's denial of the conversion as "arbitrary and capricious," prompting a review of Grayscale's filing.
An August court ruling overturned an initial SEC rejection, leading Grayscale and its CEO Michael Sonnenshein to propose an Ethereum spot ETF conversion, which is still awaiting approval. If the SEC does not announce a decision, Grayscale can initiate the approval process with SEC staff, according to Fox Business' Eleanor Terrett.
This follows the delay of Ark Invest's similar application and comes before BlackRock's Bitcoin spot ETF proposal slated for March next year. Crypto analyst Michael van de Poppe anticipates a surge in Bitcoin price if a decision is not reached. Currently, Bitcoin trades at approximately $26,700 due to geopolitical strife in the East and heavy selling by Bitcoin miners.
Crypto influencer Dan Gambardello views an appeal by the SEC as unlikely, pointing out the SEC's ongoing struggle with crypto regulation. A non-appeal might stabilize Bitcoin prices and impact the 2024 Bitcoin halving event. The SEC has faced criticism for its stance against crypto, which contrasts with other developed nations' approach.
If approved, these spot ETFs could instigate mass Bitcoin ETF approvals in 2024 and would signify a defeat for SEC Chair Gary Gensler. This could also open doors for other financial giants like Blackrock (NYSE:BLK) and Fidelity to enter the crypto space.
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