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SEC does not appeal Grayscale case! Grayscale: Once approved, will convert GBTC to ETF

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SEC does not appeal Grayscale case! Grayscale: Once approved, will convert GBTC to ETF

After experiencing its first setback in the SEC's lawsuit against Grayscale's GBTC conversion, the 45-day period for appeal has now passed, with the SEC choosing not to appeal the case. Grayscale has also stated that once approved by the SEC, they will convert GBTC into an ETF.

SEC Does Not Appeal Grayscale Case

On August 30th this year, a preliminary result was reached in the lawsuit between the SEC and Grayscale's GBTC transformation. The presiding judge, Neomi Rao, believed that Grayscale's proposed transformation to a spot ETF is essentially similar to a Bitcoin futures ETF, and the SEC did not clearly explain why they should treat the two products differently. As a result, the ruling requires the SEC to reexamine Grayscale's transformation.

Read more: Understanding the SEC's Logic Gap! Why the Court Deems SEC's Rejection of Grayscale's Spot ETF Application Unreasonable

Within the 45 days following the end of the judgment, the SEC still has the option to appeal the case, but as of now, no action has been taken by the SEC after this period.

According to a report by Reutershere, sources familiar with the matter stated that the SEC does not plan to appeal this case. Reuters also mentioned that the SEC's decision may pave the way for Bitcoin spot ETF applications.

Grayscale: Will Convert GBTC to ETF Once Approved by SEC

Regarding this news, FOX News reporter Eleanor Terrett also shared Grayscale's perspective on the matter on her Twitter account, where Grayscale stated:

"With the 45-day deadline for the federal appellate process having passed, the window to seek a rehearing has closed. The court is expected to issue its final order within seven days. The Grayscale team remains prepared operationally and will convert GBTC to an ETF once approved by the SEC."

In addition to Grayscale's official statement, Bloomberg ETF analyst James Seyffart also commented on the matter, stating that the SEC is unlikely to appeal to the Supreme Court, and discussions between the two parties will commence this week.

Significant Reduction in GBTC Discount

According to data from Ychartshere, due to the continuous positive news surrounding Grayscale recently, the discount on GBTC has significantly decreased from -48.23% at the end of last year to the current -15.8%.