Spot Bitcoin ETF Latest News
By approving the Bitcoin ETF by the end of 2021, SEC paved the way for the king of cryptocurrencies to embark on its ATH journey. The applications for Spot Bitcoin ETF, including BlackRock and other major players, filed in June, have excited investors. However, everyone had the same question: What will happen to the Grayscale lawsuit?
Following SEC’s rejection decisions for BTC, Grayscale filed a lawsuit against the regulatory agency. Grayscale claims that the agency engages in negative discrimination and aims to convert the Bitcoin Trust, which is currently trading at a negative premium, into an ETF. If approved, this would eliminate the negative premium and help the parent company DCG overcome its financial difficulties. On the other hand, as the lawsuit against SEC continues, it seemed unlikely that the agency would respond positively to BlackRock and others’ requests. It would be illogical for SEC to oppose the Spot ETF in court and then approve it.
Therefore, Grayscale needs to withdraw the lawsuit or wait for the court’s decision. While the step in this matter is expected to come in July, Grayscale has now made an important announcement about the current situation.
“As a reminder, we were advised to expect a decision regarding GBTC until the fall of 2023. This decision will have a significant impact on millions of investors and issuers of US spot Bitcoin ETFs.”
If this decision is made before 2024, we may witness high volatility in cryptocurrencies.
