U.S. SEC Decides Not to Appeal in Grayscale’s Physical Bitcoin ETF Conversion Lawsuit

In a pivotal development, the U.S. Securities and Exchange Commission has opted not to appeal in a lawsuit concerning Grayscale's application for a physical Bitcoin ETF conversion.

Dive into our detailed report to find out what this could mean for the future of Bitcoin ETFs and the cryptocurrency market as a whole.

Positive Signal for Approval of Physical ETF Conversion?

It has been revealed that the U.S. Securities and Exchange Commission (SEC) did not file an appeal by the deadline in a lawsuit concerning the conversion of Grayscale's physical Bitcoin ETF.

Grayscale, a U.S.-based digital asset management firm, had submitted an application to convert its existing investment trust, known as GBTC, into a physical Bitcoin ETF.

The SEC did not approve this application, leading Grayscale to file a lawsuit, claiming that the SEC is treating futures ETFs and physical ETFs based on arbitrary different criteria.

Key Developments in August 2023

On August 29, 2023, it was reported that a judge from the U.S. Appeals Court accepted Grayscale's request for a review and ordered a re-examination of Grayscale's application.

The SEC had until October 13, 2023, to file an appeal against this judgment. As no appeal was submitted by the designated deadline, this news has garnered significant attention.

Although the absence of an appeal does not guarantee that the conversion into a physical Bitcoin ETF will be approved, it is viewed as positive news concerning the approval of the ETF conversion.

Notably, an analyst from Bloomberg, who has been closely followed in the cryptocurrency industry, is reported to have predicted a 90% chance that the physical Bitcoin ETF will be approved by January 2024.