Table of Contents:

· The grayscale Bitcoin spot ETF issue has been in a tug-of-war with the SEC for over a year

· The SEC review may still be on the way

BlockBeats news, October 16th, according to Fox Business reporter Eleanor Terrett's social media post, Grayscale issued a statement regarding the decision not to appeal to the US SEC, stating: "The 45-day deadline for seeking a review under the Federal Appeals Procedure Rules has passed. The court will issue a final authorization within 7 days. The Grayscale team is ready to convert GBTC to ETF once approved by the SEC."

Gray Scale's Bitcoin Spot ETF Issue Has Been in a Tug-of-War with the SEC for Over a Year

Since June of last year, Grayscale has been engaged in a lawsuit with the SEC over the launch of a Bitcoin spot ETF. In the tug-of-war between Grayscale and the SEC, discussions about a Bitcoin ETF have become more and more frequent. It wasn't until August 29th of this year that Grayscale officially won the lawsuit against the SEC. After the news broke, the negative premium rates of Grayscale Bitcoin Trust Fund (GBTC) and Ethereum Trust Fund (EETH) continued to narrow. As of the time of writing, GBTC's negative premium rate was 15.88% and EETH's negative premium rate was 25.54%.

Previously, BlockBeats reported that Grayscale planned to apply to convert its BTC trust into an exchange-traded fund (ETF) in October 2020. However, the SEC rejected the application for various reasons during the three-year period. A year ago, Grayscale decided to file a lawsuit against the SEC, which has led to a legal battle lasting over a year.

Related reading: "Grayscale wins SEC lawsuit, is there new hope for the DCG empire behind GBTC?"

SEC's fickleness has become a consensus among the US legislative and judicial branches. As for the outcome of the lawsuit, although Grayscale won the lawsuit, it does not mean that GBTC can be freely converted into ETF, "but this has taken a step forward in the conversion."

Although Grayscale's victory in the lawsuit does not mean that GBTC will immediately be freely converted into ETF, it also means that the listing of Bitcoin spot ETF is closer at hand.

Obviously, once the Bitcoin spot ETF is officially listed in the United States, it will be a milestone event in the global blockchain field, because this means that US regulatory agencies legally recognize Bitcoin as a financial product, and Bitcoin will gain unprecedented influence.

SEC review may still be on the way

Previously, on October 14th, James Seyffart, an ETF analyst at Bloomberg, posted on social media that the conversation between Grayscale and the SEC would begin next week, and the SEC is likely to make a new response to Grayscale's "GBTC conversion to Bitcoin spot ETF" application within the next two weeks.

However, on the same day, according to sources cited by Reuters, the US SEC does not plan to appeal the court's decision in the "Grayscale's application to convert GBTC to a spot ETF" case, and this decision may pave the way for the SEC to review Grayscale's Bitcoin spot ETF application. In response, according to The Block Pro, SEC Chairman Gary Gensler declined to comment on the potential appeal against the Grayscale ruling.

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