In a recent turn of events, the Grayscale Bitcoin Trust (GBTC) has witnessed a surge in trading volume following the increased attention from mainstream players in Bitcoin ETFs. Industry experts have suggested that it may not be long before the U.S. Securities and Exchange Commission (SEC) is compelled to approve the Grayscale Bitcoin ETF application. Grayscale has taken the SEC to court over the rejection of its spot Bitcoin ETF application, and recent hearings have seen the judges questioning the SEC’s motives, giving the crypto market a significant boost.
Grayscale argued before the judges that the SEC had contradicted its own earlier orders pertaining to the approval of the GBTC spot Bitcoin ETF. The SEC representatives were grilled about their reasoning for rejecting Grayscale’s request. According to Bloomberg legal analysts, Grayscale has gained a strategic edge in the lawsuit, potentially putting the SEC in a difficult position.
Elliott Z. Stein, a senior litigation analyst at Bloomberg Intelligence, estimates that the firm has a 70% chance of winning the lawsuit against the SEC. Stein believes that the SEC could be forced to approve the ETF request before the court delivers its decision in August 2023. This coincides with the approval decision pending for Ark Investment Management’s ETF.
The odds of Grayscale winning have increased from 40% after the oral arguments, with all three judges on the panel appearing to side with the firm. The SEC and Chair Gary Gensler may be preparing for a potential loss. Stein suggests that the SEC may make the judgment irrelevant by approving a spot Bitcoin ETF application before the court’s decision date in August 2023. If and when the ETF is approved, it is expected to simplify the process for companies like Blackrock and Fidelity in their ETF filings.
Additionally, Hong Kong-based rating agency has launched a crypto index that includes XRP and DOGE in its composition. This further signals the growing interest and mainstream adoption of cryptocurrencies.
As the crypto market continues to evolve, it is crucial for investors to conduct thorough market research before investing. The perspectives presented here are the author’s personal opinions and should not be taken as financial advice. Both the author and the publication hold no responsibility for any personal financial losses that may occur.
Source: Coingape
