Grayscale CEO Michael Sonnenshein is confident that the approval of a spot bitcoin ETF is imminent, as the U.S. Securities and Exchange Commission (SEC) prepares to review Grayscale’s application for converting its flagship fund into a spot bitcoin ETF.
Grayscale’s Lawsuit Against the SEC
Grayscale filed a lawsuit against the SEC on June 29, 2022, for denying its spot bitcoin ETF conversion. However, they emerged victorious when the court ruled in their favor and the SEC decided not to appeal the decision. As a result, the US Court of Appeals mandated that the SEC must re-review Grayscale’s spot bitcoin ETF application, paving the way for a potential approval.
The Likelihood of Approval
With Grayscale’s chief legal officer expressing confidence that the approval of a spot bitcoin ETF is inevitable, and JPMorgan predicting that the SEC will likely be forced to approve it in light of Grayscale’s court victory, the prospect of approval is high. Bloomberg ETF analyst James Seyffart also pointed out a brief window of opportunity for the SEC to approve all 12 spot bitcoin ETF filings, including Grayscale’s GBTC conversion.
While the possibility of getting approval this week exists, Seyffart believes it’s more likely to happen closer to January. Nonetheless, the momentum of speculation about the approval has already seen bitcoin‘s value surge 122% year-to-date, with investors eagerly anticipating the first spot ETF approval in the United States, in addition to the upcoming halving in 2024.
The Future of bitcoin ETFs and Market Speculation
The anticipation of a spot bitcoin ETF approval in the U.S. is driving market speculation and increased demand for bitcoin, with stakeholders closely monitoring the developments as the SEC prepares for a review. The expected approval will mark a significant milestone for the cryptocurrency market and institutional investors, opening up new opportunities for participation and investment in the digital asset space.
### News source: bitcoinmagazine.com