<\/p>\n
The Securities and Exchange Commission\u2019s decision to not appeal a court win by Grayscale Investments Friday could be a sign that spot bitcoin ETF approval is imminent.<\/p>\n
Recent amendments made to bitcoin ETF proposals \u2014 that some analysts believe are at the request of the US securities regulator \u2014 also appear to reflect progress.\u00a0<\/p>\n
Judges in the DC Circuit Court of Appeals ruled<\/a> in August that the SEC\u2019s decision to block the proposed conversion of the Grayscale Bitcoin Trust (GBTC) to an ETF, but permit bitcoin futures ETFs to start trading, was \u201carbitrary and capricious.\u201d<\/p>\n The US securities regulator had until Friday to challenge that court decision, either by seeking an appeal to the US Supreme Court or requesting an \u201cen banc\u201d panel of the Court of Appeals to revisit the ruling. \u00a0<\/p>\n It chose not to pursue those options.\u00a0<\/p>\n An SEC spokesperson declined to comment.\u00a0<\/p>\n \u201cGBTC remains operationally ready to convert to an ETF upon appropriate regulatory approvals,\u201d a Grayscale spokesperson told Blockworks Friday.<\/p>\n Read more:<\/strong> Spot bitcoin ETF approval incoming? Bitwise CIO details green light conditions<\/a><\/p>\n A number of industry watchers previously told Blockworks they did not expect the SEC to appeal<\/a>. Some have noted, however, that the securities regulator could ask Grayscale to refile a proposal and look to block GBTC\u2019s conversion to an ETF on different grounds.<\/p>\n Still, the SEC has other applications to rule on. The 240-day window for the SEC to decide on a spot bitcoin ETF proposed by Ark Invest and 21Shares expires on Jan. 10.<\/a>\u00a0<\/p>\n The ultimate deadline for it to weigh in on other plans by BlackRock, Fidelity and several other firms is roughly two months later, though decisions on those could also come in January, or sooner.<\/p>\n Nate Geraci, president of The ETF Store, said in a Thursday tweet that Friday was \u201cbasically spot bitcoin ETF approval day\u201d in his view, given what it could lead to.\u00a0<\/p>\n \u201cIf [the] SEC doesn\u2019t appeal [the] court decision in Grayscale case (I don\u2019t expect them to), then it\u2019s game on,\u201d he said in the post, predicting correctly. \u201cBasically [it\u2019s] just [a] matter of time from there. Still thinking [January] 2024 launch.\u201d<\/p>\n The SEC\u2019s apparent choice not to challenge the Court of Appeals ruling comes after issuers this week refine their bitcoin ETF proposals.<\/p>\n Bloomberg Intelligence analysts James Seyffart and Eric Balchunas said in a Thursday research note that an amended filing<\/a> by Ark Invest and 21Shares \u2014 amounting to at least five pages of text \u2014 was likely made at the SEC\u2019s request.<\/p>\n \u201cThis back-and-forth between the SEC and fund sponsors is standard practice for new launches but a first for spot bitcoin ETF applications, indicating that the SEC is working to approve Ark\u2019s proposal,\u201d Seyffart and Balchunas wrote.\u00a0\u00a0<\/p>\n Spokespeople for Ark Invest and 21Shares declined to comment.\u00a0<\/p>\n Among the changes was clarity around where the trust\u2019s assets are held: \u201cin segregated accounts on the bitcoin blockchain, commonly referred to as wallets.\u201d The filing adds that those assets are \u201ctherefore not commingled with corporate or other customer assets.\u201d<\/p>\n The new filing also notes that mining operations can consume \u201csignificant amounts of energy,\u201d and that determining the value of the ETF\u2019s bitcoin is not in accordance with generally accepted accounting principles, or GAAP.<\/p>\n \u201cIf these are actually responsive to SEC comments, it doesn\u2019t look like the agency is putting up any unnecessary roadblocks via disclosure review,\u201d Scott Johnsson, a general partner at Van Buren Capital, said in an X post<\/a> about the updates to the Ark 21Shares Bitcoin ETF proposal. \u201cAt least currently and based on this amendment.\u201d<\/p>\n Jake Chervinsky, who is soon shifting from chief policy officer at the Blockchain Association to chief legal officer at Variant Fund, replied to Johnsson\u2019s take: \u201cIt ain\u2019t over \u2019til it\u2019s over, but all signs point toward SEC approval for bitcoin spot ETFs.\u201d<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\nFiling amendments bullish?<\/h2>\n
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