Blog

Today was the deadline by which the SEC must either appeal the D.C. Circuit Court of Appeals decision to the U.S. Supreme Court, request the Appeals Court revisit its ruling, or follow the court’s August order and review Grayscale’s bid to change its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

Bloomberg has just reported, according to a person familiar with the matter, that the SEC isn't planing to ask for an appeal.

As a reminder, in August, the D.C. Circuit Court of Appeals ruled that the SEC’s denial of Grayscale Investment’s application to convert the Grayscale Bitcoin Trust (GBTC) into an ETF was invalid and must be reviewed, calling it an "arbitrary and capricious" rejection.

The court said that federal agencies are required to “treat like cases alike.”

The SEC's decision not to appeal was somewhat expected as Bloomberg ETF analyst Eric Balchunas tweeted yesterday…

And as is evident in the collapse in the market's discount for GBTC…

So what happpens next?

Bloomberg's James Seyffart tweeted the following:

Bitcoin bounced a little on the headline…

However, as CoinTelegraph reports, there's still a chance regulators could delay and continue their 'war onm crypto':

But, the likelihood of an approved spot Bitcoin ETF this year is 75%, according to Bloomberg analysts who updated the odds after Grayscale’s August court win (and is likely dramatically higher now as they previously noted the odds jump to a 95% likelihood of approval by the end of 2024).