Crypto investors are eagerly awaiting an important decision from the Securities and Exchange Commission (SEC) regarding the potential establishment of a spot Bitcoin BTC/USD exchange-traded fund (ETF).
According to Barron’s, this decision could significantly impact the cryptocurrency. Companies such as Fidelity, BlackRock BLK, and Invesco IVZ have submitted applications to launch their own Bitcoin ETFs. If approved, this could result in a significant influx of funds into Bitcoin.
Grayscale Investments has been trying for years to convert its Grayscale Bitcoin Trust into an ETF. Currently, the trust manages approximately $16.6 billion and trades similarly to a closed-end fund. Friday midnight is the deadline for the SEC to contest its previous court defeat to Grayscale.
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The SEC has consistently rejected these applications, but it remains unclear whether this will change. Last month, SEC Chair Gary Gensler stated that the agency was still considering the appellate court decision.
The court’s decision, if enforced, would negate the SEC’s refusal, returning the application to the agency. The agency can still reject Grayscale’s bid on grounds not previously raised in court.
Official comment from a Grayscale representative revealed that the company is prepared to convert GBTC into an ETF as soon as approval is granted.
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