Grayscale, a digital asset management firm, has won a lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding a bitcoin spot exchange traded fund (ETF). Following the ruling by the D.C. Circuit Court of Appeals, Grayscale’s chief legal officer, Craig Salm, believes that the SEC will now approve the ETF.
Salm expressed his confidence in an interview on TechCrunch’s Chain Reaction podcast, stating that it is only a matter of when, not if, bitcoin spot ETFs will be approved in the U.S.
The lawsuit was filed by Grayscale after the SEC denied the firm’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF on June 29, 2022. The court ruled unanimously in favor of Grayscale, which currently holds 3.4% of outstanding bitcoin, valued at “tens of billions of dollars,” according to legal documents.
Salm described the ruling as a “huge win” for Grayscale, its shareholders, and the entire crypto community. He emphasized that the focus now is on completing the necessary steps to facilitate the conversion to an ETF. Salm believes that there should be no further delay, especially considering the court’s decision in favor of an ETF conversion.
The exact timeline for the approval is uncertain, as the ruling is subject to a 45-day review period. However, if there is no rehearing, Grayscale expects a smooth process. Bloomberg ETF analysts have increased their odds from 65% to 75% for the SEC to approve a bitcoin spot ETF this year, and they predict a 95% chance by the end of 2024.
Salm highlighted the importance of approving the ETF as soon as possible, citing the large number of investors currently involved. GBTC represents nearly a million investors across all 50 states. He also noted that because the product is not currently an ETF, it is trading at a discount.
Overall, Grayscale’s legal victory has paved the way for the approval of a bitcoin spot ETF in the U.S., and the firm is optimistic about the future of the cryptocurrency market.
How has Grayscale’s lawsuit victory against the SEC impacted the cryptocurrency market and the future of bitcoin spot ETFs?
Grayscale, a leading digital asset management firm, has emerged triumphant in its lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding a bitcoin spot exchange traded fund (ETF). This landmark ruling by the D.C. Circuit Court of Appeals has injected optimism into the cryptocurrency market, with Grayscale’s chief legal officer, Craig Salm, expressing confidence that the SEC will now approve the ETF.
In a recent interview on TechCrunch’s Chain Reaction podcast, Salm expressed his unwavering belief that it is no longer a matter of if, but rather when, bitcoin spot ETFs will be given the green light in the United States.
The lawsuit was brought forth by Grayscale after the SEC denied the firm’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF on June 29, 2022. The court unanimously ruled in favor of Grayscale, which currently boasts a staggering 3.4% ownership of bitcoin, valued at “tens of billions of dollars,” according to legal documents.
Salm hailed this ruling as a “massive victory” for Grayscale, its shareholders, and the wider crypto community. He stressed that the main focus now is on undertaking the necessary steps to facilitate the smooth conversion to an ETF. Salm firmly believes that there should be no further delays, particularly in light of the court’s decision in favor of ETF conversion.
The exact timeline for approval remains uncertain, as the ruling is subject to a 45-day review period. Nevertheless, in the absence of a rehearing, Grayscale anticipates a seamless process. Bloomberg ETF analysts have raised their odds from 65% to 75% for the SEC’s approval of a bitcoin spot ETF this year, and they forecast a 95% likelihood by the end of 2024.
Salm underscored the significance of expediting ETF approval, citing the substantial number of investors presently involved. GBTC represents nearly a million investors spanning all 50 states. He also noted that due to the product’s current non-ETF status, it is trading at a discount.
In summary, Grayscale’s momentous legal triumph has paved the way for the long-awaited approval of a bitcoin spot ETF in the United States. The firm remains highly optimistic about the future of the cryptocurrency market and the opportunities this ruling brings forth.
