Bitcoin is hovering around $28,000 as investors anticipate the Securities and Exchanges Commission’s decision regarding the first-ever spot Bitcoin ETF. Yahoo Finance’s Jennifer Schonberger reports on what the possible outcomes are—what this could mean for Grayscale.
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Video Transcript
RACHELLE AKUFFO: Taking a look at Bitcoin, it’s hovering around that $28,000 mark as Bulls bet that the SEC won’t appeal Grayscale’s legal win, possibly paving a path for the first spot Bitcoin exchange-traded fund. Yahoo Finance’s Jennifer Schonberger joins us with the latest. A busy day for Bitcoin prices today.
JENNIFER SCHONBERGER: Hey there, Rachelle. Yeah, that’s right. Bitcoin and other cryptocurrencies getting a bid on hopes that Securities and Exchange Commission could soon approve the first ever spot Bitcoin ETF. The SEC will not appeal a federal court ruling that found the agency overstepped its bounds by rejecting Grayscale Investments plans to launch a Bitcoin ETF.
After the DC Circuit Court of Appeals ruling, a 45-day review process ensued that offered the SEC the opportunity to appeal the ruling. That period ended Friday, and the SEC did not appeal. The court will now issue its final mandate within seven calendar days.
It’s now up to the SEC on what to do next. This doesn’t mean the SEC must approve Grayscale’s spot Bitcoin ETF application. Though, it would probably need to come up with a stronger reason for a denial since the appeals court concluded that the SEC’s prior decision to reject that conversion was, quote, “arbitrary and capricious.”
Grayscale has not yet engaged in dialogue with the SEC on its Bitcoin application since this 45-day period has ended, but plans to engage with them and move expeditiously to try to green-light its application. If approved, Grayscale’s GBTC fund would be ready in days to begin trading as an ETF.
A Grayscale spokeswoman telling me in a statement, quote, “The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and we look forward to sharing more information as soon as practicable.” Yahoo Finance has reached out for comment to the SEC, but has not yet heard back immediately. Rachelle.
RACHELLE AKUFFO: Well, I know you’ll be following all of that for us. Appreciate that update. Our very own, Jennifer Schonberger.
