Grayscale Announces Plan of Action for Spot Bitcoin ETF Following SEC’s Denial of Appeal
In a major decision for the cryptocurrency market, the Securities and Exchange Commission (SEC) has decided against rehearing Grayscale Investments LLC’s application to transform its Bitcoin trust into a spot Bitcoin ETF.
Fox Business reporter Eleanor Terrett then get the following statement from Grayscale: “The 45-day window to file for rehearing under the Federal Rules of Appellate Procedure has closed. After this, the Court will have seven days to issue its final mandate. A spokeswoman for Grayscale informed Terrett that the company is still planning to convert GBTC to an ETF once the SEC gives its approval and that further details would be made public as soon as possible.”
This year, Grayscale gained widespread notice because it successfully converted its Grayscale Bitcoin Trust (ticker GBTC) in a federal court. With this win, GBTC is one step closer to becoming the first exchange-traded fund (ETF) in the United States that invests directly in Bitcoin. The SEC had until this coming Friday to file an appeal, but they decided not to. Before the midnight deadline, an unnamed source said the SEC has no plans to file any more appeals in this matter.
According to James Seyffart, an analyst at Bloomberg Intelligence, communication between Grayscale and the SEC is expected to start next week, as he shared through X: “Dialogue between Grayscale and SEC should begin next week.” Waiting for more instructions on what to do next.
Grayscale has long stated that the potential value of transforming GBTC into an ETF is enormous. This claim, along with their legal victory, has rekindled community enthusiasm that a Bitcoin ETF in the US is within reach.
The price of GBTC rose more than Bitcoin after Grayscale’s victory in August. The discount at which the trust is selling its underlying assets has shrunk from more than 45% early this year to less than 20% now. Cathie Wood, the CEO of Ark, was one of the notable investors who took advantage of the situation by purchasing GBTC shares at their lowest price.