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Spot Bitcoin ETF Approvals Are Coming: Here is What You Need to Know
- The SEC lets 45-day period to appeal Grayscale decision pass.
- A decision for Grayscale is not likely coming this year, and for most other applications.
- Some believe this is the calm before the storm.
In the ongoing legal battle of the United States Securities and Exchange Commission (SEC) and asset manager Grayscale, another important milestone has just passed. Grayscale, which applied for a Bitcoin (BTC) trust to be converted into a Bitcoin ETF, initially had its request denied.
After suing the regulator, the U.S. District Court for the District of Columbia ruled that the SEC must review its decision.
SEC Lets 45-Day Period Pass
The SEC had until midnight local time on Friday to appeal against the ruling. According to Fox Business Journalist and Producer Eleanor Terrett, it appears that the SEC has allowed that opportunity to pass.
She cited a statement by Grayscale, which reads that the 45-day period for seeking rehearing according to the Federal Rules of Appellate Procedure has ended. The Court will issue its final mandate within the next seven calendar days.
Grayscale said its team is fully prepared to convert GBTC into an ETF once the SEC approves, and they plan to provide more details soon.
Bitcoin ETF As Early as 2024?
Commercial Litigator Joe Carlasare believes that a Grayscale Bitcoin conversion won’t be happening this year though. He stated that even if approved in 2023 it will not go to market until 2024.
Of course, there are many Spot Bitcoin ETFs currently in varying stages of approval. Carlasare also reminds investors that a Blackrock Spot Bitcoin ETF is also highly unlikely before the end of the year.
Public comments on the application are open until October 25. Replies to any comments can be made until November 8. According to Carlasare, the SEC usually does not make decisions during comment periods and typically takes 30-60 days to review comments.
BTC in Relatively Calm Trading Range
With the approval of several Bitcoin ETFs looming, many wonder if something is brewing in the crypto space. Crypto trader Michaël van de Poppe expects some momentum to build soon. He stated that the markets are relatively calm right now, but the Bitcoin halving is less than six months away, and the ETF approval is even closer.
He stated, “This cycle is the institutional cycle, and therefore, the cycle can be compared to 2015-2017.”
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During that time, Bitcoin went from several hundred dollars in 2015/16, rose to the low thousands in early 2017, and exploded to US $19,345 ($30,582) in Mid-December of that year.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
