Legal Triumph: SEC to Reconsider GBTC as a Bitcoin ETF
Asset management giant, Grayscale, emerged victorious in its legal battle with the U.S. Securities and Exchange Commission (SEC) this past August. A court directive urged the SEC to reconsider its prior rejection of converting Grayscale’s Bitcoin trust fund, GBTC, into a Bitcoin spot ETF.
No SEC Appeal Boosts Market Optimism
The expiration of the court’s appeal period saw no appeal request from the SEC’s Chairman, bolstering market sentiment on GBTC’s likelihood of becoming a spot ETF.
Grayscale’s Renewed Push for ETF Status
Amidst this backdrop, Grayscale officially announced on its website that it has submitted a fresh Form S-3 registration to the SEC. This move aims once more to transform its Bitcoin trust fund, GBTC, into a Bitcoin spot ETF.
Anticipated NYSE Listing with Familiar Ticker
Grayscale shared that, with SEC’s nod of approval, this Bitcoin spot ETF would list on the New York Stock Exchange (NYSE) Arca, continuing with the “GBTC” trading symbol.
A Waiting Game: SEC’s 240-Day Review Window
Hopeful as it may seem for GBTC’s swift approval, the road may not be as straightforward.
According to Grayscale’s recent disclosure, a prerequisite for the spot ETF application’s green light is the approval of the 19b-4 form from its registration application. Based on the SEC’s review process, an initial response is anticipated around mid-December, with a maximum timeline of 240 days for the final directive.
SEC’s Review Cycle: A Series of Extensions
Once an ETF application is published in the Federal Register, it enters a public comment phase. The SEC typically decides within 45 days — either approving or denying. Absence of a decision means another 45-day extension, followed potentially by a 90-day one. The utmost limit is a decision within 240 days post the start of the public comment period.
A Trend of Delays and Anticipation for 2024
Recent reports from early October highlighted the SEC’s postponement in deciding on seven Bitcoin spot ETF proposals, including those from giants like BlackRock and Bitwise. The next critical deadline for the SEC’s response is roughly projected for January 2024.
Is a 2023 Bitcoin ETF Approval Feasible?
Given the SEC’s current steadfast stance, the chances of seeing a Bitcoin spot ETF getting approved within this year seem slim. Yet, who knows what unexpected turns might prompt the SEC to shift its position? We’ll have to wait and watch.
Keywords: Grayscale, Bitcoin ETF, GBTC, U.S. Securities and Exchange Commission (SEC), Spot ETF, NYSE Arca, 19b-4 form, BlackRock, Bitwise, Federal Register
