The much-awaited verdict on Grayscale Investments\u2019 legal battle against the U.S. SEC, aiming to transform its Grayscale Bitcoin Trust ($GBTC) into an Bitcoin ETF, has been delayed. The decision, which carries the potential to open doors for crypto assets on conventional U.S. financial markets, was initially anticipated to be announced this Tuesday at 11 AM EST.<\/span><\/p>\n Read More:<\/em><\/strong> Odds of Spot Bitcoin ETF Approval Watered Down by Former SEC Chief<\/a><\/p>\n <\/p>\n \ud83d\udea8NEW: No decision in @SECGov<\/a> vs. @Grayscale<\/a> today.<\/p>\n \u2014 Eleanor Terrett (@EleanorTerrett) August 15, 2023<\/a><\/p>\n<\/blockquote>\n <\/p>\n \u00a0<\/p>\n Grayscale\u2019s ambition to transform its Bitcoin trust into an ETF has garnered attention due to the potential ramifications for the cryptocurrency landscape. ETF approval <\/a><\/span>would<\/span> enable direct trading of crypto assets on established financial platforms, significantly boosting the asset class. The US SEC had earlier approved the launch of several bitcoin futures ETFs, but Grayscale\u2019s proposal faced repeated rejections.<\/span><\/p>\n <\/p>\n Legal experts and observers had their eyes peeled for this week\u2019s decision, which is expected to carry considerable implications. The delay in the verdict can be attributed to various factors, including the annual rotation of law clerks in the United States District Courts during August, as noted by Scott Johnsson, a general partner of Van Buren Capital. <\/span><\/p>\n Historically, This situation led to judges\u2019 efforts to clear their caseload before new personnel took charge.<\/span><\/p>\n<\/blockquote>\n \u00a0<\/p>\n March ’21\/’22 cases with decisions within 160 days of oral: 30\/32 (94%)<\/p>\n Days since Grayscale (March ’23) oral: 160 days<\/p>\n Why should we expect August? Because law clerks for DC generally cycle in\/out this month, so judges aim to clear prior caseload before the new guard arrives. https:\/\/t.co\/vVj0dHus90<\/a><\/p>\n \u2014 Scott Johnsson (@SGJohnsson) August 14, 2023<\/a><\/p>\n<\/blockquote>\n \u00a0<\/p>\n According to a recent Financial Feeds <\/span>report<\/span>, Grayscale CEO Michael Sonnenshein had hoped the court would decide within the third quarter. While Sonnenshein refrained from speculating on the outcome, he emphasized that Grayscale was prepared to escalate the matter to the Supreme Court if the initial lawsuit failed. If this route also proves unsuccessful, the company aims to engage with the SEC in discussions concerning potential relief from tender offer rules.<\/span><\/p>\n Additionally, the legal proceedings have brought attention to the SEC\u2019s approach, with Grayscale\u2019s attorney raising concerns about the SEC\u2019s use of evidence and reasoning from the VanEck order, which is not officially documented. This strategy, known as \u201cpost hoc\u201d reasoning, has drawn criticism for its use as a basis to justify denials.<\/span><\/p>\n<\/blockquote>\n In conclusion, Grayscale\u2019s pursuit of converting its $GBTC to an Bitcoin ETF faces a temporary setback as the court\u2019s decision gets deferred. While the crypto community and investors eagerly await the outcome, the delay underscores the complexity of regulatory hurdles and the high stakes in shaping crypto assets\u2019 future within traditional financial frameworks.<\/span><\/p>\n <\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n –><\/p>\n –><\/p>\n Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114<\/a> and reach out to him at sunil (at) coingape.com <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <!– <\/p>\n\n
Why GBTC Conversion to Bitcoin ETF is a Big Deal<\/strong><\/h2>\n
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Will Court Approve Grayscale Bitcoin ETF?<\/strong><\/h2>\n
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