Bitcoin Jumps Nearly 4% as US SEC Opens Talks With Grayscale Over Spot ETF Conversion
The leading cryptocurrency, Bitcoin, is racing towards $37,000 as it has surged nearly 4% in the last 24 hours
Bitcoin has been pumping recently based on the speculation around spot Bitcoin ETF conversion that will bring major institutional funds to invest in the largest cryptocurrency.
As reported earlier, Bloomberg ETF research analysts, Eric Balchunas and James Seyffart, revealed that there is a eight-day long window wherein the SEC could approve all 12 spot Bitcoin ETF applicants beginning as soon as 9th November. The analysts believe there is a 90% chance of a Bitcoin spot ETF approval by January.
SEC Opens Talks with Grayscale over Spot Bitcoin ETF
The U.S. SEC has commenced discussions with Grayscale Investments to delve into the intricacies of the company’s request to convert its trust product GBTC into a spot Bitcoin exchange-traded product (ETF), CoinDesk reported citing a source familiar with the matter.
Following its legal victory, Grayscale has been actively engaging with both the SEC’s Division of Trading and Markets and the Division of Corporation Finance.
Both divisions of the SEC are poised to play pivotal roles in shaping and ultimately granting approval for Grayscale’s ETF application.
Grayscale has maintained a longstanding relationship with the SEC, primarily due to its existing Grayscale Bitcoin Trust (GBTC). However, when the company sought to launch an ETF that would directly hold cryptocurrency assets, the SEC initially denied the request.
This decision led to a legal battle that culminated in a federal court panel ruling that the SEC’s rejection was “arbitrary and capricious.” Consequently, the court ordered the agency to rescind its denial. This court ruling was finalized just last month, effectively returning Grayscale’s ETF application to the regulatory spotlight.
At the time of writing, Bitcoin is trading above $36,600, up nearly 4% in the lasst 24 hours, as per CoinMarketCap.