Jay Clayton, the former Chairman of the US Securities & Exchange Commission, has said that it is inevitable that spot Bitcoin ETF is approved in the region. The statement is based on the fundamental assumption that the US already has a Future Bitcoin ETF. Plus, there is a demand among investors to gain access to spot Bitcoin ETF.
Since the SEC has secured an unfavorable verdict over Grayscale, it is likely that the Commission may come up with a final statement by the middle of October 2023. Jay has voiced concern about the dichotomy between cash products and future products. Both of them are on the edge for a long time. It is only natural if the momentum is lost and clarity is sought in this matter.
It is clear that BTC is not a security, said Clayton, while adding that there are trusted providers who want to make the product available to those who need it.
As for Grayscale versus the SEC, the verdict has given the Commission some relief but only to the extent that a fresh rejection can be filed if there is a valid reason. Till now, they have been sidelining the advancement by alleging market manipulation and fraud. The next rejection can happen if the reasons are different.
There is a chance that the SEC may eventually come up with a reason, but no one knows what that could be. They have taken some time to review the final report before moving forward with the case. If Clayton’s words are to be believed, then mid-October could be the time when the US gets its spot Bitcoin ETF.
The ETF product has been proposed by the likes of Fidelity and BlackRock. JPMorgan believes that the SEC could be forced to approve the applications from several asset managers pertaining to the spot Bitcoin ETF.
The most recent statement from Jay Clayton has put things into perspective, especially after their Chief Executive Officer expressed that the implementation is uncertain despite the huge win. The last day of August saw Michael Sonnenshein interact with the media to state that while he was happy with the verdict, he was unsure if spot Bitcoin ETF would ever see the light. Shares of Grayscale were first surging 17% to fall by 4% a day before.
Suppose reports are to be believed that the wait is for the final mandate to issue operational procedures, which will then decide their fate. The SEC can file for a hearing only within 45 days, after which the court will have the final say in the matter. The SEC will then be tasked with converting the GBTC into an ETF or keep denying it for a longer time.
There is a slight effect on BTC, for its prices in USD are down by 0.15% in the last 24 hours. It is dancing around $25,931.10 at the time of articulating this piece.