Analysts think the Grayscale decision could destabilize the race for spot Bitcon ETFs.
The cryptocurrency industry has been wondering for a while how the SEC will respond to spot Bitcoin ETFs. However, analysts shared their views on the Grayscale decision.
Waiting for the Grayscale decision may change the balance in the spot Bitcoin ETF race
Industry analysts suggest that the decision in a pending lawsuit between Grayscale and the SEC could be decisive in the race for spot bitcoin ETFs and custody sharing agreements. It was perhaps expected that the SEC once again postponed the spot Bitcoin ETF application submitted by Ark Invest and 21Shares, but according to experts, a court decision and the information requested by the SEC in the coming period may change all the balances.
Nathan Geraci, chairman of advisory firm The ETF Store, said the latest decision in a lawsuit filed by the SEC about Grayscale Investments’ proposal to convert its flagship fund, GBTC, into a spot bitcoin ETF last year, could have a major impact. In March, Grayscale claimed in oral arguments against the SEC that the agency contradicted itself and displayed inconsistency by allowing bitcoin futures ETFs instead of spot bitcoin products.
Geraci stated that waiting for the SEC’s outcome in the Grayscale case to emerge could influence its decision on spot Bitcoin ETFs. “In this scenario, the SEC would have much more leverage to continue rejecting spot bitcoin ETFs,” Geraci said. “Why would they approve a spot Bitcoin ETF until the outcome of the Grayscale case is clear? They don’t have such a motivation for now,” he said.
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