Grayscale’s Legal Triumph Boosts Prospects for Bitcoin ETF Approval: CEO Sonnenshein

Key Points:

• Grayscale’s legal win against the SEC bolsters Bitcoin ETF hopes, but refiling is uncertain.
• Growing support for Bitcoin ETF approval as industry figures back the move.
• The SEC’s stance is challenged by Grayscale’s victory and potential ETF progress in review.

Grayscale Investments CEO Michael Sonnenshein is cautiously optimistic following a recent legal victory that paves the way for a potential Bitcoin exchange-traded fund (ETF), according to Bloomberg.

The crypto asset manager won a significant dispute against the SEC, marking a pivotal moment for the digital asset sector. Sonnenshein expressed uncertainty about the necessity of refiling the ETF application after this success.

Sonnenshein indicated that the company is awaiting final operational procedures as outlined by the court’s upcoming mandate, which is expected within 45 days of the ruling.

Grayscale’s legal win does not compel immediate SEC approval for the Bitcoin ETF, but it heightens the likelihood of future endorsement. Calls for such ETFs have gained momentum, with influential figures like BlackRock’s CEO Larry Fink advocating for them.

While the SEC retains options like appealing the decision or modifying their reasoning, the path of least resistance seems to be approval for spot Bitcoin ETFs. The ruling’s impact on SEC Chair Gary Gensler’s stance remains uncertain.

The first attempt at a Bitcoin ETF was made by the Winklevoss twins in 2013, but successive proposals were rejected until the approval of a Bitcoin futures ETF in 2021.

Grayscale’s Bitcoin Trust (GBTC), established in 2013, provided exposure to Bitcoin’s earlier stages, becoming popular with $40 billion in assets at its peak in 2021.

Despite the legal victory, a Bitcoin ETF launch is not guaranteed. The SEC and Grayscale are reviewing the decision, with the latter planning to share information on the conversion process.

Sonnenshein emphasized that the SEC’s previous grounds for denial should no longer apply, and Grayscale has yet to receive communication from the SEC post-ruling.

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