Last night, the US Securities and Exchange Commission (SEC) decided not to appeal a recent court decision that found it was wrong to deny Grayscale's application to create a spot Bitcoin exchange-traded fund (ETF).
In August, the District of Columbia Court of Appeals in Washington ruled that the SEC was wrong to reject Grayscale's proposed Bitcoin ETF.
Grayscale is suing the SEC, arguing that because the agency has previously approved certain custody agreements to prevent fraud on BTC futures-based ETFs, the same setup should be satisfactory for Grayscale's spot ETF.
“Grayscale Will Begin Negotiations with the SEC in the Next Two Weeks”
Bloomberg ETF analyst James Seyffart announced that negotiations between Grayscale and the SEC will begin next week and that the SEC is likely to give a new response within the next 2 weeks.
Seyffart also shared that ProShares will launch the Short ETH Strategy ETF, which will begin trading on October 16. The SEC is facilitating the approval of all Ethereum futures ETFs.
James Seyffart also shared his views on the subject. Seyffart believes that if the en banc application is not filed, the case will essentially be settled. He also said he did not anticipate the SEC would appeal to the Supreme Court.
The term “en banc” is a legal term that refers to the hearing of a case by the entire panel or all judges of a court, rather than by a select panel of a few judges. En banc hearings are usually reserved for cases of major importance or to review a controversial decision by a panel of judges on a matter of public importance.
*This is not investment advice.