Market watchers are keenly anticipating a potential declaration this Friday regarding the prospect of a Bitcoin (BTC) exchange-traded fund (ETF).
Come October 20, a court in the District of Columbia is scheduled to deliver a mandate. This could reinforce an August verdict supporting Grayscale’s endeavor to transition its Bitcoin trust (GBTC) into an ETF.
With the US Securities and Exchange Commission (SEC) opting not to challenge the earlier decision, expectations are building about what might unfold next.
Elliott Stein and James Seyffart, esteemed analysts from Bloomberg Intelligence, are among those expecting further clarity or an announcement from entities such as the SEC, Grayscale, or even the judiciary regarding the upcoming proceedings.
Seyffart remarked, “We are on the lookout for further details or a possible announcement from the SEC, Grayscale, or maybe even from the judicial end regarding the subsequent phases.”
He added, “It’s challenging to predict the complete next moves as this scenario is unprecedented.”
Progress in Grayscale’s Case Could Bring Further Clarity to ETF Approval
The advancement in Grayscale’s endeavor to transform its GBTC into an ETF might shed light on the hitherto ambiguous ETF approval process.
The stance of the SEC concerning Grayscale’s motion and the myriad other pending ETF applications has left many in the industry in a state of speculation.
Prominent crypto investor, Michael Novogratz, for instance, voiced his optimism, suggesting that the SEC might give the nod to a Bitcoin ETF within the year.
Grayscale has contended that the transition of GBTC into an ETF could potentially unlock considerable benefits for its stakeholders.
Historically, the SEC has showcased caution regarding ETFs, but that hasn’t deterred numerous firms, such as BlackRock and Invesco, from pursuing their own ETF ventures. Galaxy Digital, under Novogratz’s leadership, is collaborating with Invesco for a joint proposal.
Analysts at Bloomberg Intelligence predict that Grayscale’s petition might receive approval in tandem with other major players like BlackRock.
This sentiment is shared by Cathie Wood of ARK Investment Management, who has voiced support for the idea that the SEC should approve several applications concurrently.
In a recent dialogue, while the SEC Chair Gary Gensler refrained from committing to any specific timeline concerning the debut of spot Bitcoin ETFs, he did highlight the efforts of the disclosure review team. He emphasized that the agency has been engaging with, and providing feedback to, potential issuers.
Investment Firms File Amended Applications
Fidelity Investments, renowned as one of the global giants in asset management, has submitted a revised application for its prospective Wise Origin Bitcoin Trust.
This revised filing zeroes in on pivotal elements including the secure storage of clients’ Bitcoin assets and the elucidation of potential risks stemming from the ever-evolving regulatory environment of cryptocurrencies.
This step by Fidelity mirrors recent moves by Ark Invest and Invesco, both of which have also updated their submissions for spot Bitcoin ETFs.
Such evolving dynamics underscore the ongoing dialogues between the SEC and hopeful ETF providers. Consequently, there’s a noticeable uptick in positive anticipation among both traders and industry watchers.