2 years ago
Bloomberg’s Senior ETF Analyst Eric Balchunas stated that a perchance momentous determination from the SEC concerning Grayscale Investments could beryllium revealed today, Aug. 15, oregon astatine the latest, this Friday, Aug. 18.
This determination is apt to person noteworthy implications for the support of Bitcoin exchange-traded products (ETPs), with each eyes connected Blackrock’s caller filing alongside countless others who followed suit, adding Coinbase arsenic a spouse nether a ‘surveillance sharing agreement.‘
Grayscale challenged the SEC’s refusal to o.k. its Bitcoin ETP application, arguing for a just and accordant attack to each issuers. The contention stems from the SEC’s acceptance of leveraged Bitcoin futures ETFs portion rejecting spot Bitcoin ETF applications, a determination Grayscale deems arsenic inconsistent and arbitrary. Today’s pending announcement denotes the pivotal constituent of this ongoing dispute.
Grayscale interaction connected spot Bitcoin ETFs
Grayscale’s contention with the SEC is tied to its proprietary interests and has broader implications for the crypto industry. The steadfast initially filed to database the Grayscale Bitcoin Trust (GBTC) for trading connected the NYSE Arca exchange, a petition rejected by the SEC successful 2022. Grayscale counteracted with a ineligible challenge, arguing that the SEC’s support of Bitcoin futures ETFs portion denying spot Bitcoin ETF applications represents an evident inconsistency successful policy.
Multiple plus managers, including BlackRock, ArkInvest, and VanEck, person precocious submitted spot Bitcoin ETP filings to the SEC. These filings item intended surveillance-sharing agreements with crypto speech Coinbase, a determination immoderate judge could beryllium the cardinal to SEC approval.
Grayscale, however, insists that surveillance sharing with an unregulated level similar Coinbase is not capable to conscionable the criteria for approving a Bitcoin ETP based connected anterior SEC indications.
According to Bloomberg’s senior ineligible analyst, the last determination regarding Grayscale’s lawsuit has a 70% accidental of being favorable. Notwithstanding, helium advises stakeholders to hole for immoderate outcome, reinforcing the conception that certainty is an elusive luxury successful the domain of integer assets.
Timeline and outliers for decisions
Intriguingly, Balchunas shared a station from Scott Johnsson, a concern lawyer, who shed airy connected the imaginable timeline for Grayscale’s case. According to Johnsson, 94% of cases argued successful March 2021 and 2022 received decisions wrong 160 days of oral arguments. Currently, 160 days person passed since Grayscale’s oral statement successful March 2023, suggesting that a verdict is imminent.
Johnsson besides highlights the emblematic process of DC instrumentality clerks cycling successful and retired successful August, propelling judges to wide their caseloads earlier the caller incumbents arrive. Given this pattern, helium suggests we mightiness expect a determination successful August.
He besides noted that each March 2022 cases argued earlier the DC Circuit were decided wrong 154 days, but for a azygous outlier astatine 170 days. This further solidifies the rationale down expecting a determination soon.
As the SEC’s determination connected Grayscale’s lawsuit is awaited, these observations supply a important discourse for the apt timing, highlighting however ineligible norms and procedural routines tin usher our expectations successful the ever-unpredictable crypto sphere.
Editor’s Note: This nonfiction volition beryllium updated should further quality go available.
The station Grayscale determination versus SEC whitethorn travel today, latest Friday – reports appeared archetypal connected CryptoSlate.
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