Cryptocurrency investment manager Grayscale has urged the U.S. Securities and Exchange Commission to hasten the process of converting the Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF). This comes on the backdrop of a prior rejection reversed by a major court victory last week.
Grayscale’s lawyers have stated in a letter to the SEC that there’s no longer reasonable grounds for denying their ETF application. This assertion is based on the fact that a unanimous ruling of a United States Court judged the SEC’s previous dismissal of GBTC’s ETF bid as arbitrary and baseless while ETFs holding Bitcoin futures contracts got let off the hook.
While the SEC has mid-October to repeal the ruling, uncertainty hangs as analysts posit the agency’s appeal chances are slim. Moreover, pursuit for a Supreme Court hearing seems grim, as existing investors are at a 20% disadvantage to the holdings of Bitcoin in GBTC, thereby facing “unjustified harm” daily, as indicated in Grayscale’s letter.
The catch 22 persists; other asset managers have pending ETF applications with the SEC, including BlackRock and Fidelity Investments. The optimist foresees approvals by late this year, but the SEC holds the right to stall until 2024 given a potential backlash of an unsettled array of submitted applications. This delay could pose a threat to hundreds of millions in assets lodged in futures-based Bitcoin ETFs, though the SEC is unlikely to backpedal on those.
Entering mainstream discussion, SEC Chair Gary Gensler is expected to give transparency to the SEC’s reaction to the trail of events during a congressional testimony next week. For now, GBTC continues to trade at a loss to its Bitcoin holdings, albeit a 0.4% increase on the day of the ruling. Intuitively, Bitcoin is still the top crypto to invest in.
A broadened perspective on the bright side of the narrative will reveal synthesis, Wall Street Memes, Chailink, Bitcoin BSC, and Render as potential top crypto investments in this current climate. They made the list given their robust fundamentals and/or positive technical analysis.
To put it into perspective, the SNX is upwardly mobile, highlighting the significance of resistance limits. Standing at $2.327, a closer look shows the cryptocurrency in a probable bullish phase as it stands higher than both the 50-day EMA ($2.261) and the 100-day EMA ($2.153).
Nonetheless, the odds may swing sideways, so careful monitoring is advised. The analogy applies across the entire crypto world, given the inherent market volatility. SNX, WSM, LINK, BTCBSC, and RNDR, show immense promise, but one investor’s goldmine could turn out to be another’s fool’s gold. Let’s monitor the tide of the tide, with the eyes of an eagle and the patience of a saint.
Source: Cryptonews
