Bloomberg Analyst Says Defeating SEC Could Not Assure GBTC ETF

• Bloomberg Analyst James Seyffart believes Grayscale might win the lawsuit towards the SEC over its GBTC ETF software.
• Nevertheless, Seyffart indicated {that a} victory may not essentially imply a spot Bitcoin ETF could be permitted.
• Grayscale CEO Michael Sonnenshein beforehand predicted a verdict within the case by the autumn of 2023.

James Seyffart, an ETF Analysis Analyst for Bloomberg Intelligence, believes {that a} victory for Grayscale Investments in its ongoing lawsuit towards the U.S. Securities and Trade Fee (SEC) might not essentially permit the agency to start out issuing spot Bitcoin exchange-traded funds (ETF) after changing current Grayscale Bitcoin Belief (GBTC) shares.

Seyffart just lately appeared in a podcast hosted by What Bitcoin Did. The Bloomberg analyst shared his tackle the continuing authorized battle between the Digital Foreign money Group’s subsidiary and the highest securities regulator in the USA. The lawsuit was filed in June 2022 after the SEC rejected Grayscale’s software to transform GBTC to a spot Bitcoin ETF.

The analyst indicated that there was a excessive probability of the SEC dropping the lawsuit. The prediction was according to a Bloomberg memo that Seyffart had contributed to earlier this yr. The memo, penned by Bloomberg’s Senior Litigation Analyst Elliot Stein, famous that the court docket would doubtless vacate the SEC’s order rejecting Grayscale’s spot BTC ETF.

Bloomberg Intelligence is of the opinion that Grayscale is 70% more likely to win. A ruling might be anticipated within the matter within the second or third quarter of 2023. Nevertheless, the language within the ruling will dictate whether or not the court docket offers the SEC a gap to reject the ETF software on totally different grounds or compels them to simply accept it.

Talking on the aftermath of a positive consequence for Grayscale, Seyffart famous, “The SEC might then simply deny for different causes… So Grayscale may win the case after which nonetheless not be capable of convert to an ETF.”

Earlier this yr, Grayscale CEO Michael Sonnenshein appeared in a What Bitcoin Did podcast. When requested concerning the timeline of a verdict, Sonnenshein revealed that he anticipated a ruling within the matter as early as the autumn of 2023, i.e., someplace between Q2 and Q3.