Will Grayscale’s Bitcoin ETF be approved and billions of $ flow into the market? Judge about to rule against SEC
Sources said that the SEC officials are losing grip over the case with Grayscale edging at higher chances of winning.
The Grayscale spot Bitcoin ETF will be the first in the market and could lead to the inflow of billions of dollars of institutional money.
The world’s largest asset manager Grayscale Investments has been pushing hard to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, the U.S. Securities and Exchange Commission (SEC) has been hell-bent on not giving the approval citing concerns over the lack of consumer protection.
As per the latest market reports, speculations are growing that the SEC insiders are losing confidence in their chances of winning the lawsuit. Last month itself, the judges scrutinized the SEC officials over their denial to approve Grayscale’s spot Bitcoin ETF application.
The Grayscale team has put forward a strong defense stating that the SEC has been giving arbitrary decisions. Also, the world’s largest crypto asset manager said that the SEC should not be having qualms about approving a spot Bitcoin ETF if they have been open to approving the Bitcoin futures contracts.
SEC losing its grip on the case?
In their initial arguments made before the District of Columbia Court of Appeals, Grayscale said that the SEC was unfair in its case. However, as per the latest update, the SEC officials seem to be losing their grip on the case. Citing sources from the SEC, Twitter user Andrew noted that Grayscale is likely to win this ongoing lawsuit. In his recent tweet, Andrew wrote:
UPDATE: There is a growing expectation amongst agency insiders that @Grayscale will get a favorable opinion (win) soon at the appellate level. **the twist here is that factions at the SEC want to either respond by getting out of the way and allowing a spot #Bitcoin ETF to proceed, or the SEC goes on offense and dismantles #Bitcoin futures ETF’s.
But Andrew is not alone to expect the outcome of the case in favor of Grayscale. Ryan Milkis, the founder of Messari Crypto, has also predicted that the SEC is going to lose its case against Grayscale. In his tweet on Thursday, April 6, Milkis wrote:
The SEC is going to lose its case against Grayscale. Once that happens, the American investing public will see what a child the current SEC leader is when he responds by kicking over his sand castle & dismantling futures ETFs vs. letting the spot ETF pass through.
Grayscale’s win will be a win for Bitcoin investors
If Grayscale manages to win over this case, it would be the first spot Bitcoin ETF in the market which will be a massive win for the entire Bitcoin community. Several players have been trying hard over the last few years to bring a spot Bitcoin ETF to the market.
Also, the approval of a spot Bitcoin ETF will be massive and lead to greater institutional participation in the market thereby leading to an inflow of billions of dollars. The Bitcoin price is already up by more than 70 percent since the beginning of 2023. It is difficult to say whether Grayscale manages to pull off this victory this year. If so, Bitcoin could once again rally to its all-time high of $69,000 and beyond.
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Filed under: Bitcoin - @ April 7, 2023 11:11 am