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SEC to Possibly Reevaluate Grayscale Spot Bitcoin Application at November 2 Closed Meeting

Summary:
Experts continue to speculate on what the SEC’s next course of action regarding crypto-based ETF applications could be. The United States Securities and Exchange Commission (SEC) appears to be gearing up to reexamine Grayscale’s application to convert its Bitcoin trust into a spot exchange-traded fund (ETF). This comes after a recent decision by the D.C. Circuit Court of Appeals to scrape the regulator’s rejection of Grayscale’s spot Bitcoin ETF application. The court described the SEC’s rejection decision as “arbitrary and capricious”, in what has been described as a landmark victory for cryptocurrency in general and for crypto-based investment vehicles in particular. The SEC has scheduled a meeting on November 2 to discuss matters such as settlement claims, administrative

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Experts continue to speculate on what the SEC’s next course of action regarding crypto-based ETF applications could be.

The United States Securities and Exchange Commission (SEC) appears to be gearing up to reexamine Grayscale’s application to convert its Bitcoin trust into a spot exchange-traded fund (ETF). This comes after a recent decision by the D.C. Circuit Court of Appeals to scrape the regulator’s rejection of Grayscale’s spot Bitcoin ETF application.

The court described the SEC’s rejection decision as “arbitrary and capricious”, in what has been described as a landmark victory for cryptocurrency in general and for crypto-based investment vehicles in particular.

The SEC has scheduled a meeting on November 2 to discuss matters such as settlement claims, administrative proceedings, resolution of litigation claims, and matters related to examinations and enforcement proceedings. According to the meeting agenda posted to the regulator’s site, the meeting will be attended by Commissioners, legal counsel to Commissioners, the Secretary to the Commission, and recording secretaries.

Finance lawyer Scott Johnsson noted that the meeting is the first closed meeting of commissioners since the SEC’s appeal deadline in the Grayscale expired. He added that while this is a date of interest, there is no guarantee that there will be any news concerning Grayscale’s application.

Experts continue to speculate on what the SEC’s next course of action regarding crypto-based ETF applications could be. Some have taken the regulator’s decision to not appeal the ruling in the Grayscale case as a positive sign while others are more sceptical. Galaxy Digital CEO Michael Novogratz is confident that the watchdog will approve the spot Bitcoin ETF this year.  On the other hand, ETF and mutual fund expert Dave Nadig pointed out that SEC Chair Gary Gensler could have a “semi-comedic rug-pull” up his sleeve.

Trading volumes for Grayscale’s Bitcoin trust GBTC and ProShares’ Bitcoin Strategy ETF (BITO) have experienced a surge, with the latter recording trading volume of $1.7 billion in the past week, its second-largest volume since it was created. GBTC recorded a trading volume of $800 million over the same period.

It remains unclear if the SEC will make a decision on Grayscale’s application first or on all pending spot Bitcoin ETF applications at the same time.

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Mercy Tukiya Mutanya

Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

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