The SEC will reportedly not appeal the court’s decision regarding the Grayscale Bitcoin ETF

The SEC reportedly has no plans to appeal the recent court decision that favored Grayscale Investments. The ruling requires the SEC to review the company’s Bitcoin (BTC) spot exchange-traded fund application.

Benzinga (et al.) reported that Reuters reported that the SEC will not appeal the grayscale case. pic.twitter.com/yd9BBtRwv5

– Eric Balchunas (@EricBalchunas) October 13, 2023

The SEC’s supposed decision not to appeal the D.C. Circuit Court of Appeals ruling on October 13 was highlighted. a report Reuters quoted a “source familiar with the matter.”

Bloomberg analysts also expect that the SEC will not appeal to the Supreme Court, but stressed that this does not necessarily mean that Grayscale’s application will be approved.

If the reports are true, the SEC will need to follow the August court order and review Grayscale’s request to change the Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF.

According to Reuters, the appeals court is expected to issue a mandate that specifically outlines how its ruling will be “enforced” by the SEC.

Commenting on the developments, Bloomberg ETF analyst James Seyphart noted via X that:

“I don’t think they will appeal to the Supreme Court either. Dialogue between Grayscale and the SEC should begin next week. Hoping to have more information on next steps sometime next week or the week after?

1. The deal is done I think if that’s accurate. There is no On Bank application

2. No, I don’t think they will appeal to the Supreme Court either.

3. Dialogue between Grayscale and the SEC is scheduled to begin next week. Are you hoping to get more information about next steps sometime next week or the week after? https://t.co/2EayzqeKGq

– James Seyff (@JSeyff) October 13, 2023

Going forward, Seyphart suggested that we will likely “find out in the next week (or two)” the SEC’s deadline for approving or denying Grayscale’s BTC ETF application.

If the SEC denies the request, Grayscale can then appeal that decision, delaying the process even longer.

Related: Bitcoin Price Gets New $25K Target, Boosted on GBTC Decision Day

Currently, about seven applications for Bitcoin ETFs have been filed with the SEC and are awaiting a decision from the regulator.

In a separate, earlier post to

I’ve been getting a lot of questions regarding my current view on Spot #Bitcoin ETFs over the past two weeks. This is the first section of the memo I wrote yesterday @Eric Balchunas.

TLDR: Our perspective hasn’t changed much https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV

– James Seyff (@JSeyff) October 13, 2023

Seyphart and Bloomberg’s chief ETF analyst, Eric Balchunas, also previously suggested there was a 75% chance the application would be approved in 2023.

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