SEC Can Target Crypto Custodians After Grayscale Victory
Although this is a huge development for the Bitcoin community, the court ruling doesn’t mean that GBTC will automatically convert to a spot Bitcoin ETF. Bloomberg analyst James Seyffart throws some light as to what could be the next SEC actions after the recent development. advertisement The SEC could just proceed with allowing the conversion of the GBTC product to a spot Bitcoin ETF. However, considering the SEC’s past rejections of this investment product, this isn’t going to be a cakewalk. Now, if they have to stop Grayscale from proceeding with the spot Bitcoin, they have two options: Seyffart says that the SEC would need to revoke the approval of Bitcoin Futures ETFs. The recent directive from the DC Circuit essentially states that you cannot raise concerns about market manipulation while permitting Bitcoin futures ETFs. However, he believes that the probability of this happening is quite low. The second option is to reject based on previo...