In this quarter, for the second time, Grayscale Investments, another crypto-focused company, has achieved a record victory in its legal battle against the United States Securities and Exchange Commission (SEC).
As we mentioned a few hours ago, the American court believes that the SEC’s request to convert Grayscale’s Bitcoin Trust product into a fully-fledged Exchange Traded Fund (ETF) product was arbitrary, as it claimed that it was not designed to prevent fraudulent and manipulative actions and practices.
Despite this clear position, experts like Jake Chervinsky, the Blockchain Association’s Chief Policy Officer, stated that this victory could be interpreted as a “great shame” for the SEC. However, he also pointed out that the highly sought-after spot Bitcoin ETF product has not yet been approved.
Jake, who predicts the next steps, said that the SEC will need to review Grayscale Bitcoin Trust’s (GBTC) application to convert it into a spot BTC ETF using the DC Circuit Appeal decision as a new guiding framework.
Based on the authority granted by the current decision, there is a high probability that Grayscale could become the first company to receive approval for a spot Bitcoin ETF product in the United States.
Despite the increasing optimism, Jake believes that Grayscale’s potential to obtain actual approval for the product from the SEC is still declining, which could lead to the search for another reason to reject the company’s product in the future.
Although there are various ways for the current lawsuit between Grayscale and the SEC to conclude, a potential change in the SEC’s attitude towards approving a spot Bitcoin ETF may not come this year. The regulatory agency has hinted that it may delay the review and publication of feedback on a major Bitcoin ETF until next year.
The regulatory agency may prefer to wait for this time frame, as any rushed move could send the wrong message that the agency approved it for political correctness. While the main concern of Bitcoin investors is to see an ETF launched, the timeline may vary significantly despite the current decision.