The U.S. Securities and Exchange Commission (SEC) will not appeal the court ruling in Grayscale Investments’ favour. Reuters and Bloomberg report, citing sources.
In late August, a U.S. court granted the asset-management company’s motion in the suit against the regulator over the refusal to convert GBTC into a bitcoin-ETF. The appellate court ordered the SEC to reassess its decision.
Bitcoin prices reacted to the news by rising above $27,000 but failed to hold the round level. As of writing, Bitcoin was trading at $26,870.
Bloomberg market analyst James Seyffart believes talks between Grayscale and the SEC will begin within the next two weeks.
1. Done deal I guess if this is accurate. No en banc application
2. I do not think they will appeal to the Supreme Court either.
3. Dialogue between Grayscale and SEC should begin next week. Hoping for more info on next steps sometime next week or week after? https://t.co/2EayzqeKGq
— James Seyffart (@JSeyff) October 13, 2023
In July, the SEC began reviewing applications for spot bitcoin ETFs from BlackRock, VanEck, Invesco, Fidelity Investments and WisdomTree. Franklin Templeton joined them.
Thus far the regulator has not approved any spot Bitcoin ETFs. The Commission has granted an exception for futures-based products tied to the first cryptocurrency from ProShares and Valkyrie Investments.
As a reminder, on 31 August the SEC delayed its decision on several Bitcoin ETFs at least until mid-October. At the end of September the regulator moved the consideration of applications to January 2024.