The deadline for the SEC Grayscale ruling appeal approaches. The US SEC has until Friday, October 13, 2023, to appeal the court’s August 29 ruling that overturned the SEC’s rejection of Grayscale’s spot Bitcoin ETF proposal. On August 29, 2023, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit unanimously ruled in favor of Grayscale Investments in its lawsuit against the Securities and Exchange Commission (SEC). The lawsuit challenged the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF). Investors and cryptocurrency enthusiasts are closely monitoring the Friday deadline, as it marks a pivotal moment for the approval of the Grayscale Bitcoin Spot ETF. The decision on whether the U.S. Securities and Exchange Commission (SEC) will appeal this ruling has significant implications for the cryptocurrency market. What happens if the SEC does not appeal? In the event that the SEC chooses not to appeal the ruling, or if its appeal is unsuccessful, this could pave the way for the first spot Bitcoin ETF to be approved in the United States. Recently, Grayscale said that it was cooperating with the SEC in taking the necessary steps to introduce GBTC as a spot Bitcoin ETF on the NYSE Arca. What happens if the SEC appeals? In the event that the SEC decides to appeal the ruling, the case may proceed to either the Supreme Court of the United States or an en banc panel of the D.C. Court of Appeals. An en banc panel constitutes a comprehensive review of a decision involving the entire court of appeals, as opposed to the original three-judge panel that made the initial decision. Such reviews are infrequent and are typically reserved for cases of substantial significance. If the case reaches the Supreme Court, it could entail a lengthy process, potentially spanning several months or even years before a final ruling is issued. Will the SEC Appeal the Grayscale Ruling? It is still not clear whether the SEC will be appealing the Grayscale ruling. However, considering the current approach of the US SEC and a report that the US SEC is actively engaging with the spot bitcoin issuers on their current applications, the SEC is unlikely to appeal the ruling. Eric Balchunas, who is a senior ETF analyst at Bloomberg said that the fact that the US SEC is actively engaging with the issuers on their current filings, which hasn’t ever happened, he thinks that the appeal is unlikely and also the ETF denial is unlikely. Conclusion Investors believe that the approval of Bitcoin ETFs could legitimize Bitcoin as an investment asset and potentially attract more institutional investors into the crypto space. Therefore, investors and cryptocurrency fans are eagerly waiting to see if the SEC will appeal a court ruling that overturned the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. If the SEC doesn’t appeal, or if it loses an appeal, the first spot Bitcoin ETF could be approved in the US. This would be a big deal for the cryptocurrency industry, as it would make it easier for people to invest in Bitcoin.
Will the SEC Appeal the Grayscale Ruling as Deadline Approaches?
