So, the SEC decided not to fight the court's recent decision that said they messed up in turning down Grayscale's bid for a spot bitcoin ETF. A source in the know shared this info.
Back in August, the D.C. Court of Appeals said the SEC was in the wrong to deny Grayscale's bitcoin ETF application. This case has been a big deal for a decade, with the industry really pushing for these kinds of products.
With the SEC's choice not to appeal, it looks like they might actually take another look at Grayscale's application now.
Grayscale's spokesperson hasn't commented yet.
For those who don’t know, a spot bitcoin ETF would let investors get into bitcoin without directly owning it. The SEC has rejected all these applications so far, including Grayscale's, claiming that they haven't proven they can keep investors safe from price manipulation.
Oh, and just a heads up I mentioned this on October 4.
Here's another thought that might make headlines soon: this ruling won’t really speed up the process for launching a spot ETF. Grayscale will be back at it with another application, and we’ll go through the same lengthy process again, which doesn’t even guarantee any positive outcome since the SEC could come up with fresh reasons to reject it.
SEC is not afraid of loosing time. Rather they want to do it this way so that everything starts over again. Now grey scale will have to follow every procedure from the beginning. And like you said now SEC may come up with a very strong reason for not approving the application.
So we are now coming back to square one where everything starts over with no specific resolution. All the best grayscale!
Also SEC has recently approved BlackRock's ETF. Do you think it's a coincidence?
The SEC wants more skin in the game with Blackrock being the worlds largest asset manager. They move more weight. Blackrock's ETF probably will end up being the 1st BTF no matter what.
SEC's failure to appeal the judgement has set a legal precedent. This means that the SEC will have to look for other reasons for denying subsequent applications and not the same reason covered by the ruling of the District of Columbia Court of Appeals in Washington. I know they will always come up with more reasons but at least they have lost some options.
This good news turned out to be fake because BlackRock told Bloomberg that its application is still under SEC's review. CoinTelegraph has deleted the tweet that sparked the rise of bitcoin price to as much as 10%. But the news just gave us a glimpse of what will happen when spot bitcoin ETF is finally approved by the SEC.
I heard they're trying to launch an appeal against Grayscale? Or was it against the Ripple Labs verdict?
Whichever one it was, it just shows how spineless the SEC is when they get served a decision that they do not like. Now on the crypto side of things, how long do you guys thing it will take for the Grayscale Bitcoin ETFs to hit the market? A few months? A year? Maybe two years?
I think it was the case against Ripple, here's the official documents: https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.915.0.pdf
The pressure is now on the side of SEC, not just legal but perhaps political pressure. We have seen him in Congress already and majority of the Congressman is not on the side of Gensler. So if everything goes on schedule maybe next year we might see the long awaited Bitcoin ETF because SEC doesn't have a choice.
Yes, it is true that this news turned out to be fake. The SEC has not approved BlackRocks request yet. The second hearing was scheduled for October 17, but it seems that it has been postponed. I have not heard any news about this hearing.
It is clear that the SEC wants to procrastinate and buy more time and is constantly trying to postpone, so they may ask Grayscale and BlackRock to file new applications to enter into a new cycle of wasting time.
You want to say that SEC will finally start working and write clear refusals LOL
If I were paid as much as the lawyers at the SEC, I would have already prepared several options during the deadline. But I am more confident that the ETF is needed so that more hamsters will come to this market.