Why a bitcoin exchange fund can be approved today

You’ve probably heard a thing or two about bitcoin (BTC) spot ETFs or exchange funds. The US stock exchange supervisory authority SEC (Security and Exchange Commission) is currently examining a large number of such ETF applications. However, the SEC has an opportunity to delay the decisions, as it did last week with the ARK Invest filing. Still, there’s a chance the SEC may have to give the green light to a spot bitcoin ETF later today.

The Grayscale Bitcoin ETF lawsuit

This has everything to do with a lawsuit between Grayscale, the largest crypto asset manager in the world, and the SEC. Grayscale filed with the SEC a year ago to convert its large Bitcoin fund (GBTC) into a Bitcoin ETF. However, as expected, the SEC denied the application. Not satisfied with this, Grayscale sued the US regulator.

Based on previous lawsuits, the analyst believes James Seffert that we may be able to expect a court ruling in the Grayscale-SEC litigation today, August 15. However, it is not certain, the decision could also be made this Friday, although it would already be an exception.

According to the corridors, Grayscale has a good chance of emerging victorious from the court. Including the CEO of ARK Invest and ETF analyst Nate Geraci share this expectation. In fact, Geraci states that Grayscale has a nearly 100 percent chance of winning.

If Grayscale wins, Bitcoin price can surge

A win could mean Grayscale still gets to convert its GBTC fund into an ETF. Then soon we would finally get the first spot bitcoin ETF in the US market. That would be gigantic news for the crypto world and potentially have the necessary consequences for the Bitcoin price.

This could be the long-awaited trigger for new money to flow into the market again and cause the price to rise sharply. However, it is still a bit early and many market participants expect that the SEC will make a decision on the various Bitcoin ETF filings in early 2024. After all, the very last deadline is about to expire.

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