Grayscale’s Bitcoin ETF Decision Will be Revealed This Week: Here’s What Pro XRP Lawyer Predicts

The post Grayscale’s Bitcoin ETF Decision Will be Revealed This Week: Here’s What Pro XRP Lawyer Predicts appeared first on Coinpedia Fintech News

Grayscale Investments, a company that deals with digital assets, has been trying to change its Bitcoin trust into something called a spot Bitcoin exchange-traded fund (ETF). But the U.S. Securities and Exchange Commission (SEC) said no. Grayscale didn’t agree with the decision, so they sued the SEC. Here’s what you need to know about this important situation:

The Countdown to a Pivotal Decision

Grayscale’s pursuit to convert its Bitcoin trust into a spot Bitcoin ETF has led to a legal battle with the SEC. The decision on this lawsuit could come as early as this week, according to insights from industry experts.

Timing Insights from Scott Johnsson

General Partner of Van Buren Capital, Scott Johnsson, revealed that U.S. District Courts tend to clear out caseloads in August, as law clerks cycle out. He pointed out that 30 out of 32 cases in March of 2021 and 2022 were heard within 160 days of oral testimony. Considering Grayscale delivered its oral arguments on March 7, the timeline aligns.

Predictions from Bloomberg Analyst James Seyffart

James Seyffart, a Bloomberg analyst, believes the decision might arrive by Aug. 15. Johnsson supported Seyffart’s prediction, calling it a “pretty decently good bet.”

Grayscale’s Stance and Legal Battle

In June 2022, the SEC rejected Grayscale’s application to convert its GBTC to a spot Bitcoin ETF, sparking Grayscale to sue the regulator. They accused the SEC of acting arbitrarily, failing to apply consistent treatment to similar investment vehicles.

Industry Support for Grayscale

Notably, Grayscale has found backing from industry commentators, including ARK Invest’s Cathie Wood and ETF analyst Nate Geraci, who have tipped Grayscale to win the lawsuit.

Grayscale has recently voiced that the SEC should approve all Bitcoin spot ETF applications simultaneously to prevent firms from having an advantage over other applicants, further complicating the scenario.

One thing is certain: this decision will be one for the history books, either opening a new chapter for Bitcoin ETFs in the U.S. or leaving the industry to grapple with its implications.