Grayscale, the world's largest digital asset manager, has achieved a major victory for the cryptocurrency industry in its legal battle with the US Securities and Exchange Commission (SEC) over its Grayscale Bitcoin Trust (GBTC) product.
According to a research report by Bernstein, analysts said the court's decision “paves the way for a Spot Bitcoin ETF” that would track the BTC price directly rather than through futures contracts or other derivatives. They also noted that the decision raises the possibility that the SEC will approve all existing Spot Bitcoin ETF applications together, rather than choosing one or a few winners.
However, the report noted that the court's decision does not mean that the GBTC product will be immediately converted into an ETF, but rather that Grayscale will have a fair chance to be treated equally with other applicants.
Analysts estimate that the earliest possible date for approval is next week, when the first review cycle ends, and the latest is early 2024, when the final SEC review will take place.
Bernstein has previously predicted that the spot Bitcoin ETF market could be quite large, reaching 10% of bitcoin's market value within two to three years.
*This is not investment advice.
