24/7 Cryptocurrency News

Just-In: Court Postpones Grayscale Vs US SEC Verdict

Grayscale's bid to convert $GBTC to an Bitcoin ETF faces delay as court decision is postponed.
Published by
Just-In: Court Postpones Grayscale Vs US SEC Verdict

The much-awaited verdict on Grayscale Investments’ legal battle against the U.S. SEC, aiming to transform its Grayscale Bitcoin Trust ($GBTC) into an Bitcoin ETF, has been delayed. The decision, which carries the potential to open doors for crypto assets on conventional U.S. financial markets, was initially anticipated to be announced this Tuesday at 11 AM EST.

Read More: Odds of Spot Bitcoin ETF Approval Watered Down by Former SEC Chief

 

Advertisement

Why GBTC Conversion to Bitcoin ETF is a Big Deal

Grayscale’s ambition to transform its Bitcoin trust into an ETF has garnered attention due to the potential ramifications for the cryptocurrency landscape. ETF approval would enable direct trading of crypto assets on established financial platforms, significantly boosting the asset class. The US SEC had earlier approved the launch of several bitcoin futures ETFs, but Grayscale’s proposal faced repeated rejections.

Legal experts and observers had their eyes peeled for this week’s decision, which is expected to carry considerable implications. The delay in the verdict can be attributed to various factors, including the annual rotation of law clerks in the United States District Courts during August, as noted by Scott Johnsson, a general partner of Van Buren Capital.

Historically, This situation led to judges’ efforts to clear their caseload before new personnel took charge.

 

 

Advertisement

Will Court Approve Grayscale Bitcoin ETF?

According to a recent Financial Feeds report, Grayscale CEO Michael Sonnenshein had hoped the court would decide within the third quarter. While Sonnenshein refrained from speculating on the outcome, he emphasized that Grayscale was prepared to escalate the matter to the Supreme Court if the initial lawsuit failed. If this route also proves unsuccessful, the company aims to engage with the SEC in discussions concerning potential relief from tender offer rules.

Additionally, the legal proceedings have brought attention to the SEC’s approach, with Grayscale’s attorney raising concerns about the SEC’s use of evidence and reasoning from the VanEck order, which is not officially documented. This strategy, known as “post hoc” reasoning, has drawn criticism for its use as a basis to justify denials.

In conclusion, Grayscale’s pursuit of converting its $GBTC to an Bitcoin ETF faces a temporary setback as the court’s decision gets deferred. While the crypto community and investors eagerly await the outcome, the delay underscores the complexity of regulatory hurdles and the high stakes in shaping crypto assets’ future within traditional financial frameworks.

Advertisement

Share
Sunil Sharma

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025
  • 24/7 Cryptocurrency News

Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility

Pi Network has now added two new features to its Testnet. These are a decentralized…

October 1, 2025
  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025