24/7 Cryptocurrency News

What Can be SEC’s Next Move After Grayscale Victory in Spot Bitcoin ETF?

Bloomberg analyst James Seyffart predicts two scenarios that the SEC could undertake to block the GBTC conversion to spot Bitcoin ETF.
Published by
What Can be SEC’s Next Move After Grayscale Victory in Spot Bitcoin ETF?

On Tuesday, August 29, Grayscale registered a historic win after the DC Court stated that the U.S. Securities and Exchange Commission (SEC) cannot deny Grayscale’s conversion of its Bitcoin Trust GBTC to a spot Bitcoin exchange-traded fund (ETF).

Although this is a huge development for the Bitcoin community, the court ruling doesn’t mean that GBTC will automatically convert to a spot Bitcoin ETF. Bloomberg analyst James Seyffart throws some light as to what could be the next SEC actions after the recent development.

The SEC could just proceed with allowing the conversion of the GBTC product to a spot Bitcoin ETF. However, considering the SEC’s past rejections of this investment product, this isn’t going to be a cakewalk.

Now, if they have to stop Grayscale from proceeding with the spot Bitcoin, they have two options:

  1. Seyffart says that the SEC would need to revoke the approval of Bitcoin Futures ETFs. The recent directive from the DC Circuit essentially states that you cannot raise concerns about market manipulation while permitting Bitcoin futures ETFs. However, he believes that the probability of this happening is quite low.
  2. The second option is to reject based on previously unexplored grounds. The Bloomberg analyst suggested that this might be related to Bitcoin custody or settlement, a concern that doesn’t apply to futures ETFs. The SEC has been raising significant concerns regarding custodial arrangements.

The Grayscale victory has provided a major catalyst to the struggling Bitcoin and the broader cryptocurrency market. Hours later, the Bitcoin price surged by 6% and is trading just under the $27,500 level.

Experts View on Grayscale Spot Bitcoin ETF

Some industry experts have chipped in weighing their opinions about Graysclae’s victory. Jake Chervinsky, Chief Policy Officer of the Blockchain Association stated that this victory is certainly a huge embarrassment for the SEC. However, this won’t be all glitter and gold for the SEC as well!

Jake maintains a pessimistic outlook regarding the possibility of Grayscale securing approval for the product from the SEC. He believes the SEC might find another reason to reject the product in the future.

On the other hand, Bitcoin critic Peter Schiff stated that GBTC becoming a spot Bitcoin ETF could be bearish for Bitcoin. “Traders can buy GBTC now and sell or short BTC. Once GBTC becomes an ETF, the discount to NAV goes away. Shareholders could then redeem, forcing GBTC to sell BTC into the market, vastly increasing the tradable supply,” he added. 

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 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