For the second time this quarter, another crypto-focused company, Grayscale Investments has tapped a record-breaking victory in its legal battle against the United States Securities and Exchange Commission (SEC).
As previously reported by Coingape, the DC Circuit Court believes the SEC acted arbitrarily in rejecting the request by Grayscale to convert its Bitcoin Trust product into a full-fledged Exchange Traded Fund (ETF) product on grounds that it was not “designed to prevent fraudulent and manipulative acts and practices.”
With this ruling, experts like Jake Chervinsky, Chief Policy Officer of the Blockchain Association noted that this victory can be construed as a “huge embarrassment for the SEC.” Despite this obvious position, he noted that the much sought-after spot Bitcoin ETF product is yet to be approved.
Predicting the next steps, Jake said the SEC will have to go back to reviewing the application to convert Grayscale Bitcoin Trust (GBTC) to spot BTC ETF using the DC Circuit Appeal ruling as a new guiding framework.
Resting on the powers of the current verdict which is deemed the law, the likelihood that Grayscale will make history as the first firm to secure approval for a spot Bitcoin ETF product in the United States is high.
Despite the growing optimism, Jake is still bearish on the potential that Grayscale might score a win for the actual approval of the product from the SEC who may just explore another reason to deny the firm of the product at a later time.
Though there are a number of ways this current case between Grayscale and SEC can pan out, a potential shift in stance by the SEC to approve a spot Bitcoin ETF may not come this year. The regulator has hinted at pending the review and issuance of feedback concerning the grand Bitcoin ETF until some time next year.
The regulator may choose to wait out this timeline as any hastened move might send a wrong message that might show the agency approved it in a bid to be politically correct. While the core concern of Bitcoin investors is to see an ETF launched, the timeline may differ significantly despite the current ruling.
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