The SEC has important deadlines coming up, just a few days away, to make decisions about seven Bitcoin ETF applications. Big companies like BlackRock, Bitwise, and Fidelity have applied.
Grayscale Investments recently had a victory against the SEC in a US appeals court. This makes us wonder what the SEC will do next and how possible it is for Bitcoin ETFs to get approval.
The U.S. Securities and Exchange Commission (SEC) has a tough choice ahead. It’s facing close deadlines to make decisions about several Bitcoin exchange-traded fund (ETF) applications. Big names like BlackRock, Bitwise, VanEck, Fidelity, Invesco, WisdomTree, and Valkyrie have applied. They’re all waiting to hear from the SEC by September 4th, a date confirmed by many official SEC documents.
This situation has become more complex due to a recent legal loss the SEC experienced in a U.S. federal appeals court. Grayscale Investments won against the SEC. This has raised questions about what the SEC will do next and how it might affect the chances of Bitcoin ETFs getting approved.
99.99999% of the world doesn't know that the SEC has to decide on 7 BTC ETFs within the next 3 days:
-blackrock
-bitwise
-vaneck
-wisdomtree
-invesco
-fidelity
-valkyriethe suits at our doorstep
— od1n fr33 🐺🔊 (@odin_free) August 29, 2023
Important Court Decision Before Upcoming SEC Deadlines
Shortly after a significant court ruling on August 29th, there are important deadlines approaching. This ruling was about the SEC’s earlier refusal to let Grayscale change its Grayscale Bitcoin Trust (GBTC) into a regular Bitcoin ETF.
The court stated that the SEC’s decision was “random and impulsive.” A specialist, Bloomberg’s ETF analyst James Seyffart, clarifies that this court ruling doesn’t make the SEC have to say yes to Grayscale’s or others’ future requests. However, it does raise the chances of a good outcome for the applicants waiting for a decision.
Grayscale Court Win Puts SEC in Decisive Position
Following the court’s decision favoring Grayscale, the SEC now faces limited choices. It can appeal to the U.S. Supreme Court within 90 days or request a full circuit court review, known as “en banc,” to overturn the previous three-judge panel ruling. Without an appeal, the court might specify its ruling’s terms, which could mean instructing the SEC to approve or re-evaluate Grayscale’s application.
Seyffart outlines two likely options for the SEC. They might agree and approve Grayscale’s GBTC change into a Bitcoin ETF, or they could rework their arguments and possibly remove the listing of current Bitcoin futures ETFs. However, the latter choice seems improbable, considering the SEC’s reported openness to Ethereum futures ETFs.
The SEC holds the power now, and its decisions will significantly impact the cryptocurrency market. While the regulator’s next move is unknown, the crypto community is eagerly observing. A positive decision could open the door to mainstream Bitcoin investment opportunities.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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