US Court Urges SEC To Review Submission Of Bitcoin ETF From Grayscale

JAKARTA - The US Court of Appeals for the DC Circuit ordered the US Securities and Exchange Commission (SEC) to review the proposed Exchange Trade Fund (ETF) Bitcoin spot submitted by Grayscale.

The decision demands the SEC to re-examine the company's prospectus, thus placing the SEC in a position that requires difficult decisions: granting approval to Grayscale's proposal or giving new reasons for refusal.

Grayscale won at the US Court of Appeals for the Circuit DC area in late August in a lawsuit over the Bitcoin spot conversion of the SEC. Grayscale called the decision "a monumental step" in their fight against regulators. However, dissatisfied with the result, Grayscale sent a letter in September to push the SEC to speed up the approval process.

Although the SEC has the option to oppose the court's ruling, they do not appear to continue the fight, allowing the opportunity to be missed. According to an internal source, an appeal would not be filed.

However, Grayscale remains persistent with a new approach, re-submitting the S-3 to the SEC. With the latest hints from the court, the SEC must re-evaluate the Grayscale case and decide to approve or reject it for new reasons.

It should be noted that SEC affairs do not only involve Grayscale. They have nearly a dozen other Bitcoin ETF registration requests that must be assessed. This includes requests from large companies such as Blackrock, Fidelity, Invesco, and Franklin Templeton.

On Monday, October 23, Bloomberg Intelligence principal analyst Eric Balchunas revealed that the Depository Trust & Clearing Corporation (DTCC) has cataloged for the Ishares Bitcoin Trust code "IBTC."

After Grayscale's disclosure and DTCC's addition of IBTC, the price of Bitcoin rose on Monday, nearing US$31,800 (Rp504 million). In addition, Grayscale's GBTC shares have increased in relation to a decrease in discontinuations to its net asset value (NAV).

In contrast to a large discount of 48% ten months earlier, the discount was reduced to only 11.03% on October 20, 2023, according to data from ycharts.com.