Bitcoin ETF Waiting: All Eyes on Grayscale - SEC Case

Bitcoin ETF Waiting: All Eyes on Grayscale – SEC Case

After the sharp drop in bitcoin yesterday, all eyes will be on the Grayscale-SEC case today.

Case opened in June 2022, first hearing in March 2023

As it is known, Grayscale, which has a bitcoin fund of 625,000 BTC, applied to the SEC to convert this fund into an ETF (Exchange Investment Fund). The SEC rejected the application on June 30, 2022, and Grayscale filed suit on the same day. The first hearing in the case was held in March 2023.

decision can be taken today

A decision is expected in this matter today after about a year. That’s what some Bloomberg analysts and lawyers hope. Initially, it was speculated that the decision would be made on Tuesday, August 15, but there was no development. Hence, the hopes were postponed till Friday.

There are logical reasons to wait for Friday for the verdict.

There is good reason to expect a decision within this week. In 2021 and 2022, cases starting in March are decided within 160 days, according to information shared by finance attorney Scott Johnson. Stating that 30 out of 32 cases were decided within this period, the lawyers emphasize that 160 days have passed since the first hearing in the Grayscale case. Johnson also says that judges usually try to dispose of the cases in August.

Grayscale’s chances of winning are seen at 70 percent.

While the case could be decided at any time, analysts believe Grayscale has a 70 percent chance of winning. The decision in favor of Grayscale will pave the way for Grayscale’s application to convert GBTC into an ETF, as well as other ETF applications. If this happens, it would allow spot bitcoin ETFs to be accepted until 2024.

What will be the effect of ETF?

The market is eagerly awaiting the approval of spot ETFs. This is because of the expectation that ETFs will bring new investor flows into bitcoin. ETF investors control $30 trillion in assets and can invest between 1% and 2% in cryptocurrencies, according to Bloomberg senior ETF analyst Eric Balchunas.

May be interested – What is an ETF and Why is Bitcoin ETF Important?

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