- Grayscale won against the SEC for their spot Bitcoin ETF application review.
- But they are also pushing the US regulator to approve their application.
Spot Bitcoin ETFs have become a huge part of the discussion in the crypto industry. Many financial firms such as Grayscale are in line applying for their own ETFs. So, getting access to these ETFs provides an opportunity for more adoption of the crypto industry.
Grayscale Win against the SEC
- Grayscale is one of the biggest players in the crypto industry. They own one of the largest amounts of Bitcoin at more than 3.4% of the total Bitcoin supply. However, this is quite huge as it is worth tens of billions of dollars. This investment firm applied to convert its Grayscale Bitcoin Trust (GBTC) to spot Bitcoin ETF sometime in June 2022. However, the Securities and Exchange Commission continued to deny them the right to a review.
- Grayscale took the case to the courts to compel the SEC to review their application. So, their case was quite successful as they came out with the win. The judge presiding over the case told the SEC to review their application. However, this doesn’t mean the SEC will approve their application.
Grayscale Urges the SEC to Approve their Application
- Grayscale has already moved beyond the review stage and is already pushing the SEC to approve its application. So, Grayscale’s legal team reached out to the SEC, suggesting they have a meeting to discuss the way forward.
- They are citing their investors’ situation as the reason for this push. So, they claim their investment firms are losing their investor’s trust due to the current situation. Grayscale will continue pushing for the SEC to approve their application. Moreover, they continue to maintain a positive attitude that the regulator will do the right thing.
The SEC Has Until October to Make Certain Decisions
- The SEC is under heavy criticism about their mode of operations. The lack of clarity remains the major problem with the agency. In fact, they are currently facing several complaints for their bias towards spot ETFs. Apparently, these agencies often prefer to approve the futures ETFs. Nevertheless, many hope the federal agency changes many of its operation methods.
- According to the law, the SEC has about 240 days to decide regarding the issue of ETFs. Within this period, there are about four subsections of deadlines. So, many investment firms applying for spot Bitcoin ETFs will hear from the US regulator in October. Assuming the SEC approves the Grayscale ETF or that of any firm, it will mark an incredible time in the crypto industry.
Conclusion
Grayscale recently won its court case against the SEC for the review of a spot Bitcoin ETF application they made in 2022. However, the investment firm isn’t releasing its foot from the gas pedal after reaching out to the SEC to approve its ETF. The SEC approving any of these ETFs will mark an incredible era in the crypto industry.
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