The Securities and Exchange Commission is currently in discussions with Grayscale Investments regarding the conversion of the company’s main fund into a spot Bitcoin exchange-traded fund.
Grayscale has been in communication with both the SEC’s Division of Trading and Markets and Division of Corporation Finance, following a court ruling that requires the agency to re-review its application for a spot Bitcoin ETF.
This ruling came after Grayscale sued the SEC for rejecting its plan to convert its flagship GBTC fund.
The court noted the SEC’s inconsistent treatment of spot Bitcoin ETFs and similar funds based on futures contracts, which the SEC has approved.
Grayscale recently submitted a new filing for the fund following the court’s formal mandate in August. During a Senate Banking Committee hearing in September, SEC Chair Gary Gensler stated that the agency is still reviewing the court’s decision.
Other firms, such as BlackRock and Fidelity, have also submitted applications for spot Bitcoin ETFs. Experts believe that the court’s decision in favor of Grayscale could potentially sway the SEC’s decision in favor of other applicants.
