Some analysts believe that the best possible scenario for the beginning of an upward trend in the digital currency market is for the Securities and Exchange Commission to approve part of the applications for the launch of a spot bitcoin ETF. However, there is also the possibility that the agency will use its right of appeal to delay a decision until next March.
According to Cointelegraph, the US Securities and Exchange Commission is approaching its first deadline to decide on seven applications to launch a spot bitcoin ETF. That too in the context of losing to Grayscale Investments in the United States Federal Court of Appeal yesterday.
On September 1 (10 September), Bitwise Investment Company will wait for the approval or rejection of its Bitcoin ETF launch license from the Exchange Commission. The result of the decision regarding the application of Blackrock, Inosco, Fidelity, Vanac and Wisdomtree will also be announced on September 2 (11 Shahrivar).
Valkyrie will also wait for the response of the Stock Exchange Commission on September 4.
On August 29 (September 7), the US Court of Appeals declared that the Exchange Commission’s rejection of Grayscale’s request to convert Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF was arbitrary and capricious. However, James Seyffart, an ETF analyst at Bloomberg noted:
A court victory does not mean that the SEC will approve Grayscale’s or other companies’ requests in the future.
In an interview with Bloomberg, Seyfarth explained that Grayscale’s victory will certainly increase the chances of success for the next wave of applicants.
He is not sure when these requests will be approved; Because the stock exchange commission can postpone its decisions. The agency can set two more deadlines for each fund before it has to issue a final decision within 240 days of the filing.
However, the last deadline of the Stock Exchange Commission for the final decision will be the middle of next March (March).
What choices will the Stock Exchange Commission have after Grayscale’s victory?
After Grayscale wins in court, the regulatory body has 90 days to appeal to the U.S. Supreme Court or request a panel of judges; A court whose verdict issued by a panel consisting of three judges can cancel the previous verdict.
However, the Securities and Exchange Commission has not yet commented on its next decision.
If the agency does not appeal, the court must determine how to enforce its ruling, which could include ordering the SEC to approve Grayscale’s request or at least reconsider it.
The first is for the SEC to admit defeat and approve the request to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF.
In the latter case, the SEC should completely cancel the listing process for Bitcoin futures ETFs or reject Grayscale’s request with a new argument.
However, Eric Balchunas, another ETF analyst at Bloomberg, considers it unlikely that Bitcoin futures ETFs will be canceled due to the Commission’s acceptance of Ethereum futures ETFs.
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