In a dramatic turn of events, Grayscale CEO Michael Sonnenshein has declared that the company is “ready for the main event,” anticipating imminent approval for the conversion of its flagship fund into a spot Bitcoin exchange-traded fund (ETF). This declaration, shared on Twitter, marks a significant moment in Grayscale’s long-standing efforts to secure regulatory approval for a Bitcoin ETF.
The journey towards approval took a litigious turn on June 29, 2022, when Grayscale filed a lawsuit against the US Securities and Exchange Commission (SEC) following the denial of its spot Bitcoin ETF conversion. In a surprising twist, Grayscale emerged victorious in its legal battle against the SEC, prompting the regulator to opt against appealing the court decision. Subsequently, the US Court of Appeals mandated that the SEC must re-review Grayscale’s spot Bitcoin ETF application.
As the regulatory landscape shifted, Grayscale’s chief legal officer expressed confidence, stating that the approval of a spot Bitcoin ETF is “a matter of when, not a matter of if anymore.” This sentiment aligns with earlier remarks from JPMorgan in September, suggesting that the SEC may be compelled to approve spot Bitcoin ETFs following Grayscale’s legal triumph.
Recent developments highlighted by Bloomberg ETF analyst James Seyffart indicate a brief window of opportunity for the SEC to approve all 12 spot Bitcoin ETF filings, including Grayscale’s GBTC conversion. This critical window opened last Thursday and will extend for at least eight days, representing the final opportunity for a spot Bitcoin ETF approval in the United States in 2023.
While there is a possibility of the batch of spot Bitcoin ETFs gaining approval this week, analysts like Seyffart express caution, suggesting that if approvals do occur, it might be more likely closer to January than within the current window. The uncertainty surrounding the timing has not dampened market enthusiasm, with Bitcoin experiencing a remarkable 122% year-to-date surge. This surge is fueled by speculation regarding the potential approval of the first spot ETF in the United States, coupled with anticipation for the upcoming Bitcoin halving in 2024.
As the crypto community eagerly watches this unfolding saga, the anticipation and excitement around the potential approval of Grayscale’s Bitcoin ETF add a new layer of intrigue to the ever-evolving landscape of cryptocurrency investments. The coming weeks are poised to reveal whether Grayscale’s long-prepared “main event” will indeed come to fruition, reshaping the landscape for Bitcoin investors in the United States.
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