The U.S. Securities and Exchange Commission (SEC) reportedly has zero intentions to appeal a court ruling involving crypto titan Grayscale and its flagship Bitcoin Trust product.
Last year, Grayscale sued the SEC immediately after the regulator rejected the firm’s bid to convert the Grayscale Bitcoin Trust (GBTC) into a spot market Bitcoin (BTC) ETF.
About a year after Grayscale filed the lawsuit, a federal judge decided that the SEC must reconsider the crypto titan’s application to launch an ETF out of its Bitcoin Trust to avoid arbitrariness and inconsistency.
Citing a source familiar with the matter, Reuters reports that the SEC has no plans to appeal the decision, putting GBTC in a position to be converted into a spot Bitcoin ETF.
A spot Bitcoin ETF will allow investors to gain exposure to the largest crypto asset by market cap without having to own BTC.
Grayscale is not the only firm racing to get a spot Bitcoin ETF out in the market. Investment firms BlackRock, Invesco and Fidelity among others have all filed applications for a spot Bitcoin ETF.
Ex-BlackRock managing director Martin Bednall believes that US regulators will likely give their nod to all spot Bitcoin ETF applications at once.
“In terms of the question about a spot Bitcoin ETF in the US, I think it’s going to be hugely positive and that’s because I think the SEC will probably approve all the applications at the same time.
I don’t think they’re going to want to give anybody a first-mover advantage and I think that is because BlackRock is there in the mix and it’s a behemoth.”
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