Grayscale Investments is waiting tomorrow or soon for a federal court to formalize the defeat it handed to the U.S. Securities and Exchange Commission two months ago in the parties’ dispute over a spot Bitcoin exchange-traded fund (ETF). has added. This lawsuit in federal court closes the case and legally sets Grayscale’s victory in stone.
According to the procedure in such cases, the D.C. Circuit Court of Appeals had seven days to close the books on the matter after the SEC decided last week not to appeal the court’s decision that the agency revoked its rejection of the ETF. Grayscale’s application must be withdrawn. That deadline expires on Friday, and there are several options for what the court will do next: It may simply dismiss the case without comment or provide the SEC with further instructions on next steps.
That is the crux of this closely watched legal dispute. There remains uncertainty about what happens now with Grayscale’s application. The SEC could technically try to reject it again on other grounds, or the regulator could relent and approve this and other ETF applications, such as those from financial giants BlackRock and Fidelity.
The industry generally expects the SEC to approve the new ETFs, although when – whether later this year or sometime in 2024 – is uncertain. If approved, Grayscale would convert its Bitcoin Trust (GBTC) into an exchange-traded product. The company plans to list the ETF on the NYSE Arca, where the ETF would become generally available to investors.
The court’s final decision could come on Friday, the deadline, but could also come on Monday because of the late midnight deadline, according to a person familiar with the case.
“Grayscale remains operationally ready to convert GBTC into an ETF, and on behalf of GBTC investors, we look forward to collaborating and working quickly with the SEC on these matters,” spokeswoman Jennifer Rosenthal said in a statement.
The company filed a registration statement with the SEC today to list GBTC shares on the stock exchange. The statement – known as the SEC’s Form S-3 – has been filed but is not yet effective as Grayscale awaits notice from the agency.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.