The uncertainty surrounding Grayscale’s proposal for a Bitcoin ETF has the cryptocurrency industry on edge. A well-known industry pundit named Eric Balchunas noticed that the judgement did not come as expected and took longer than the usual 160 days.
According to historical statistics from the previous two years, 94% of cases with comparable schedules had verdicts rendered within 160 days of the conclusion of oral arguments. Many people now expect a decision by the end of August as a result of this, especially in light of the yearly changeover of law clerks at the District of Columbia Court of Appeals.
The Grayscale v. SEC case has crucial implications for the bitcoin industry. A decision in Grayscale’s favour may possibly let billions of dollars’ worth of more cash pour into the Bitcoin market.
Institutional investors would probably be encouraged to devote some of their portfolios to the bellwether coin if a Bitcoin ETF were approved in the US. A rise like that may push Bitcoin’s price way over the crucial $30,000 level. On the other hand, a poor result can trigger a major market selloff.
Grayscale insists that, in order to guarantee a level playing field, the SEC should approve all spot Bitcoin ETF applications in one go despite the avalanche of ETF filings from industry titans like BlackRock and Fidelity.
The SEC previously rejected Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, which created the conditions for the present legal impasse.
Although there is mystery around the ETF, one thing is certain: the decision will set the bitcoin sector on a new trajectory. If Grayscale prevails, the SEC may find a way to circumvent issues such that the paperwork for ETF issuers is delayed. However, if Grayscale decides to appeal and the SEC wins, the schedule may be extended and there would be additional uncertainty.
