Following a mandate from a D.C. court, the U.S. Securities and Exchange Commission (SEC) is required to re-evaluate Grayscale Investments’ proposal to convert its GBTC fund into a spot Bitcoin ETF. This directive stems from the court’s August ruling, highlighting similarities between Grayscale’s proposed ETF and already sanctioned Bitcoin futures ETFs, potentially paving the way for spot Bitcoin ETFs.
Subsequent to this mandate, a spectrum of anticipations surrounding the approval of spot Bitcoin ETFs has enveloped the crypto sector. Expert predictions suggest a collective approval of all spot Bitcoin ETF applications, painting a picture of a leveled playing field for asset managers venturing into the Bitcoin ETF domain.
The legal ruling came amidst a flurry of activity in the crypto market. Investment firm Ark Invest divested a portion of its Coinbase and GBTC shares, while Binance’s UK chief announced his departure. Despite these developments, Bitcoin managed to maintain its resilience, ticking above the $35,000 mark.
Notably, the re-evaluation of Grayscale‘s bid is part of a broader narrative surrounding spot Bitcoin ETFs in the United States. Analysts and industry leaders are expressing increased optimism regarding the approval of spot Bitcoin ETFs.
Stuart Barton, the Chief Investment Officer of Volatility Shares, envisages a simultaneous approval of all spot Bitcoin ETF applications by the SEC, a sentiment that aligns with Grayscale’s call for equitable treatment of all Bitcoin ETF Applications.
A prediction comes from Bloomberg Intelligence ETF analysts, who have raised the approval odds to 75% for 2023, up from 65%, following Grayscale’s court victory. They project that by the end of 2024, the approval odds could reach 95%. This sentiment is echoed across the industry with a general consensus leaning towards a 75% likelihood of approval in 2023.
Some experts foresee approvals possibly commencing as early as mid-2023 due to potential SEC rule alterations, while others, like Galaxy Digital CEO Mike Novogratz, are optimistic about approvals being granted before the close of 2023. These predictions signify a burgeoning optimism rooted in recent legal and procedural advancements, painting a brighter picture for spot Bitcoin ETFs’ future.
Furthermore, the ripple effect of these developments extends beyond Grayscale. Other prominent asset managers like BlackRock and Fidelity are also in the queue, awaiting the green light from the SEC for their spot Bitcoin ETF proposals.
The SEC’s re-evaluation of Grayscale’s bid could set a precedent, potentially accelerating the approval process for the numerous spot Bitcoin ETF applications currently under consideration.