Grayscale’s Bitcoin ETF gets approved, billions of $ pour into the market
- Sources said SEC officials are losing their grip on the gray-edge case with better chances of winning.
- The grayscale Bitcoin ETF will be the first in the market and could lead to the infusion of billions of dollars of institutional money.
The world’s largest asset manager Grayscale Investments has pushed hard to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, the US Securities and Exchange Commission (SEC) has been reluctant to grant the approval citing concerns over the lack of consumer protections.
According to the latest market reports, speculation is growing that SEC insiders are losing confidence in their chances of winning the lawsuit. Last month, the judges investigated SEC officials following their refusal to approve Grayscale’s spot Bitcoin ETF application.
The Grayscale team has put forward a strong defense saying the SEC made arbitrary decisions. The world’s largest crypto asset manager also said the SEC should have no qualms about approving a spot Bitcoin ETF if it has been open to approving the Bitcoin futures contracts.
Is the SEC losing its grip on the matter?
In his opening arguments before the District of Columbia Court of Appeals, Grayscale said the SEC was unfair in its case. However, according to the latest update, SEC officials seem to be losing their grip on the matter. Citing SEC sources, Twitter user Andrew noted that Grayscale is likely to win this ongoing lawsuit. In his recent tweet, Andrew wrote:
UPDATE: There is a growing expectation among agency insiders about it @Grayscale will get a positive assessment (win) soon at the appeal level. **the contention here is that factions at the SEC either want to respond by getting out of the way and allowing a seat #Bitcoin ETF to continue or SEC goes on offense and dismantles #Bitcoin futures ETFs.
But Andrew is not alone in expecting the outcome of the case in favor of Grayscale. Ryan Milkis, the founder of Messari Crypto, has also predicted that the SEC will lose its case against Grayscale. In his tweet on Thursday 6 April, Milkis writes wrote:
The SEC is going to lose the case against Grayscale. When that happens, the US investing public will see what a child the current SEC chairman is when he responds by kicking over his sandcastle and dismantling futures ETFs versus letting the spot ETFs pass.
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Grayscale’s win will be a win for Bitcoin investors
If Grayscale manages to win this case, it will be the first place Bitcoin ETF in the market which will be a massive win for the entire Bitcoin community. Several players have tried hard in recent years to bring a spot Bitcoin ETF to the market.
The approval of a spot Bitcoin ETF will also be massive and lead to greater institutional participation in the market and thus lead to an influx of billions of dollars. The Bitcoin price is already up more than 70 percent since the beginning of 2023. It is hard to say whether Grayscale can pull off this victory this year. If so, Bitcoin could once again rise to its all-time high of $69,000 and beyond.
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