HomeNewsBitcoin's Big Boost: 90% Probability of Grayscale ETF Approval by January 10th

Bitcoin’s Big Boost: 90% Probability of Grayscale ETF Approval by January 10th

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  • SEC decides against appealing a court’s decision regarding Grayscale’s BTC ETF proposal.
  • Bitcoin’s value surged past $27,000 after the news broke.

Grayscale Nears Historic ETF Transformation

The recent decision by the U.S. Securities and Exchange Commission (SEC) not to appeal the August court verdict about Grayscale’s Bitcoin ETF proposal has ignited speculation that Grayscale Bitcoin Trust (GBTC) might soon transform into the pioneering Bitcoin ETF in the United States.

The SEC faced a deadline until midnight on Friday to consider an appeal. However, it opted for no action, thereby allowing the court’s judgment, which deemed the SEC’s denial of Grayscale’s application as “arbitrary and capricious,” to stand unchallenged. As a reminder, this critical observation came from the D.C. Circuit Court of Appeals, emphasizing that federal agencies must uphold consistency by treating similar cases equivalently.

Contradictory Decisions Spark Controversy

Circuit Judge Neomi Rao had previously highlighted the inconsistency, pointing out that while the SEC had greenlighted the trading of two Bitcoin futures funds on national exchanges, it inexplicably withheld approval for Grayscale’s bitcoin fund.

While the SEC refrained from immediate comments on their decision not to appeal, Grayscale, the world’s most extensive cryptocurrency fund, has yet to release a statement. The focal point of this tussle, the GBTC, has been trading at a discount to its Bitcoin holdings since early 2021, with this disparity even widening to nearly 50% at one juncture.

The conversion of GBTC into an ETF is more than a titular change. Grayscale has consistently maintained that such a conversion would bridge the gap between the fund’s price and its underlying Bitcoin holdings. By adopting the ETF structure, which is characterized by a creation-redemption model, the fund can dynamically adjust its share count based on demand, thus effectively eliminating the persistent discount.

Besides Grayscale, significant players like BlackRock and Fidelity are lined up, seeking the SEC’s nod for their Bitcoin spot ETFs.

As the countdown begins for the final court mandate within the next week, Grayscale has intimated its readiness to metamorphose its GBTC Trust into an ETF, contingent upon the SEC’s final approval. This move, if it comes to fruition, will not only redefine Grayscale’s offering but will also make a monumental mark in the history of Bitcoin.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628