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Analysts: Grayscale victory over SEC will pave the way for Bitcoin ETF

Grayscale’s victory in a legal dispute with the US Securities and Exchange Commission (SEC) “clears the way” for spot bitcoin ETFs and increases the likelihood of approval by the regulator of all applications at the same time, writes RBC Crypto co link to a statement by Bernstein analysts.

On August 29, the court granted the claim of Grayscale, which is challenging the regulator’s refusal to approve its application to launch a bitcoin ETF. The company filed a lawsuit against the main US stock exchange regulator back in 2021.

ETFs are traded on an exchange like stocks and track the performance of the underlying asset. Their popularity is growing as they allow market participants to invest in cryptocurrencies without the need to directly purchase assets, experts noted.

“Court ruling prevents immediate transfer of GBTC product [Grayscale Bitcoin Trust] in a bitcoin ETF, but serves as the basis for treating Grayscale in the same way as other contenders for an ETF launch,” the company said in a report.

Presumably, the first applications can be approved next week, in general, the process will last until the beginning of 2024 – until the final review of the SEC documents, analysts say.

The SEC will review applications for bitcoin ETFs from Bitwise on September 1, from BlackRock, VanEck, Fidelity, Invesco and Wisdomtree on September 2, Valkyrie will receive a regulator’s decision on September 4, according to the deadlines determined by the commission.

In June, BlackRock filed with the SEC to launch a Bitcoin ETF. The investment company decided to create a spot exchange product based on cryptocurrency, despite numerous refusals from the regulator to register such funds.

Source: Cryptocurrency

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