Bloomberg analyst James Seyffart suggests there are two possible ways the SEC might try to stop the GBTC conversion into a regular Bitcoin ETF.
On August 29, a big win occurred for Grayscale when the DC Court said that the SEC couldn’t stop Grayscale from changing its Bitcoin Trust GBTC into a regular Bitcoin exchange-traded fund (ETF).
Even though this is important for the Bitcoin community, it doesn’t mean GBTC will instantly become a Bitcoin ETF. Bloomberg analyst James Seyffart talks about what the SEC might do next.
First, the SEC could let GBTC become a Bitcoin ETF, but this might not be easy because the SEC has said no to this before.
SEC’s Options to Block Grayscale’s Change
- The SEC could take back the approval for Bitcoin Futures ETFs. The recent court decision says you can’t worry about market manipulation and also allow Bitcoin futures ETFs. But Seyffart thinks this is unlikely.
- The other option is to deny it using different reasons. The analyst thinks this might involve concerns about how Bitcoin is held or settled, which doesn’t apply to futures ETFs. The SEC has been worried about how Bitcoin is kept safe.
Grayscale’s win has really helped Bitcoin and other cryptocurrencies. The price of Bitcoin went up 6% after the news and is now around $27,500.
Expert Opinion on Grayscale’s Spot Bitcoin ETF
Experts have shared their thoughts on Grayscale’s recent victory. Jake Chervinsky, the Chief Policy Officer of the Blockchain Association, sees this win as a significant blow to the SEC’s reputation. However, he also suggests that the SEC might still find ways to reject Grayscale’s product in the future, so it’s not all positive for them.
On the flip side, Bitcoin critic Peter Schiff has a different perspective. He believes that if GBTC becomes a spot Bitcoin ETF, it could have a negative impact on Bitcoin. Schiff explains that traders could buy GBTC now and then sell or bet against Bitcoin.
But if GBTC becomes an ETF, its value might align more closely with Bitcoin’s value, removing the current discount. This could lead to GBTC shareholders redeeming their shares, causing GBTC to sell a lot of Bitcoin on the market, increasing the available supply for trading.
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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