Spot Bitcoin ETF Approved: Here’s Why Grayscale is the Biggest Winner
History has been made in the United States as the United States Securities and Exchange Commission (SEC) has approved the much-awaited spot Bitcoin Exchange Traded Fund (ETF) product. With Grayscale Investments’ approval now confirmed, the company deserves all the accolades for the right reasons.
Grayscale in the Pursuit of Spot Bitcoin ETF
Grayscale changed the narrative when it decided to pursue the conversion of the Grayscale Bitcoin Trust (GBTC) into a full-fledged spot Bitcoin ETF. The push for approval was initially resisted by the SEC as the regulator noted that the market was not mature enough to float such a product on grounds of potential manipulation.
Having run the Grayscale Bitcoin Trust successfully since its inception, Grayscale Investments refused to accept this verdict and decided to file a lawsuit against the commission under the reign of Gary Gensler.
Despite its convictions that it has a compelling case to guarantee a win, Grayscale Investments went ahead to bolster its legal team by hiring Donald B. Verrilli, a Solicitor under the Obama Administration. With the experience he and others in the legal team brought to the table, a formidable fight was put up and in late August 2023, the firm scored a victory against the regulator.
The ruling, delivered by Chief Judge of the United States Court of Appeals Sri Srinivasan, requested the SEC to go back and review its decision to reject Grayscale’s application and noted that the denial was “arbitrary and capricious.”
In a major twist, the SEC refused to file an appeal, solidifying the prospects of the firm securing approval later on.
Impressive Fight Against All Applicants
Despite the frontline role played by Grayscale Investments, other applicants including BlackRock Inc., Fidelity Investments, Bitwise, and VanEck have also played their role in ensuring that the product comes to life.
The SEC had a lot of back and forth with the prospective applicants as it demanded that they dance to its specific demands in their bid to launch the spot Bitcoin ETF product. From the consensus to adopt the Cash Creates model to the lowering of fees to beat the competition, the race to float this spot Bitcoin ETF has been a marathon, one that might be worth it in the long term.
- Pi Network Mainnet to Get Major Upgrade in Q4, Says Expert
- Bitwise Solana ETF to Launch This Week as It Amends Staking, Fees? Bloomberg Weighs In
- Canary Capital Trump Coin ETF Secures DTCC Listing as Expert Predicts Price Breakout
- Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal
- FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.
