According to recent reports, the U.S. Securities and Exchange Commission (SEC) has no plans to appeal a court decision that favored Grayscale Investments. This ruling requires the SEC to review Grayscale’s spot Bitcoin exchange-traded fund (ETF) application. While this decision does not guarantee approval for Grayscale’s application, it does indicate that the SEC will need to review it. The appeals court is expected to issue a mandate outlining how the SEC should execute its ruling. Bloomberg analysts believe that the SEC is unlikely to appeal to the Supreme Court. Dialogue between Grayscale and the SEC is expected to begin next week. It is anticipated that the deadline for the SEC to approve or deny Grayscale’s application will be revealed in the next week or two. If denied, Grayscale could appeal the decision, prolonging the process. Currently, there are around seven spot Bitcoin ETF applications awaiting a decision from the SEC. Analysts predict a 90% chance of approval for a spot Bitcoin ETF application in January 2024, specifically Cathie Wood’s ARK Invest application. There is also a 75% chance of approval for an application in 2023, according to Bloomberg analysts.
