JUST

Victory

Bitcoin

Spot

<p><strong>The Spot Bitcoin ETF approval is just around the corner according to Bloomberg Senior Macro Strategist.</strong></p> 
<h2 style="text-align: center;" id="introduction">Introduction</h2> 
<p>A significant development is taking place in the world of cryptocurrency trading, as a spot Bitcoin exchange-traded fund (ETF) seems to be edging closer to reality. This advancement is linked to a <a href="https://walletinvestor.com/magazinadmin/grayscale-wins-their-lawsuit-against-sec/" target="_blank" rel="noopener noreferrer nofollow">recent court ruling</a> that favored Grayscale, a major player in the cryptocurrency investment space, over the U.S. Securities and Exchange Commission (SEC). This ruling has the potential to pave the way for the approval of a Bitcoin ETF.</p> 
<h2 style="text-align: center;" id="bloomberg-senior-macro-strategist-s-opinion">Bloomberg Senior Macro Strategist’s Opinion</h2> 
<p>Bloomberg Senior Macro Strategist <a href="https://u.today/bloombergs-mcglone-on-bitcoin-price-30k-is-new-12k#:~:text=%22The%20inevitable%20approval%20of%20%23Bitcoin,%2C%22%20McGlone%20posted%20on%20X." target="_blank" rel="noopener noreferrer nofollow">highlighted</a> a crucial aspect of this development, stating, “The inevitable approval of #Bitcoin ETFs in the US is moving closer.” This sentiment underscores the growing anticipation for ETF approval. However, a significant challenge looms large – the Federal Reserve’s ongoing tightening policies despite indications of economic contraction.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang – The inevitable approval of <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> ETFs in the US is moving closer, but the elephant in the room for all risk assets remains — the <a href="https://twitter.com/hashtag/Fed?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Fed</a> is still tightening despite the tilt toward economic contraction. <a href="https://t.co/3i7MwxiZ3i" rel="noopener noreferrer nofollow">pic.twitter.com/3i7MwxiZ3i</a></p> 
 <p>— Mike McGlone (@mikemcglone11) <a href="https://twitter.com/mikemcglone11/status/1696837806717325439?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 30, 2023</a></p> 
</blockquote> 
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<h2 style="text-align: center;" id="court-ruling-and-implications">Court Ruling and Implications</h2> 
<p>The U.S. Court of Appeals for the D.C. Circuit sided with Grayscale in a lawsuit against the SEC. This decision strengthens the possibility of an approved Bitcoin ETF. The SEC had previously rejected Grayscale’s application to convert its Grayscale Bitcoin Trust into an ETF. The court’s ruling centers on a significant point – the SEC’s inconsistent treatment of different types of Bitcoin-related products.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">JUST IN: Grayscale now closer to a Spot <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> ETF launch after winning its lawsuit against the SEC, Bloomberg reports. <a href="https://t.co/sGfsjHC17h" rel="noopener noreferrer nofollow">pic.twitter.com/sGfsjHC17h</a></p> 
 <p>— Watcher.Guru (@WatcherGuru) <a href="https://twitter.com/WatcherGuru/status/1696929348547215833?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 30, 2023</a></p> 
</blockquote> 
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<h2 style="text-align: center;" id="sec-s-challenge-and-court-s-response">SEC’s Challenge and Court’s Response</h2> 
<p>The SEC has argued against approving a spot Bitcoin ETF, citing concerns about the lack of a sufficiently regulated crypto market that can prevent manipulation. However, the court criticized the SEC for previously approving a futures-based Bitcoin product while denying a spot Bitcoin ETF. The court’s stance essentially asserts that if the SEC approves one type of Bitcoin-related product, it should logically consider approving another similar product.</p> 
<p>The court emphasized the relationship between the spot and futures markets for Bitcoin. Manipulation in either market can affect the price of Bitcoin futures. The court deemed the SEC’s denial of Grayscale’s proposal arbitrary and inconsistent due to its differing treatment of comparable products.</p> 
<h2 style="text-align: center;" id="ramifications-of-the-ruling">Ramifications of the Ruling</h2> 
<p>While the court’s decision is a step toward potential ETF approval, it doesn’t directly address concerns about manipulation in the market. The ruling highlights the SEC’s error in approving one type of ETF while rejecting another. This ruling’s impact on the SEC’s future actions remains to be seen.</p> 
<h2 style="text-align: center;" id="path-forward-for-bitcoin-etf-approval">Path Forward for Bitcoin ETF Approval</h2> 
<p>The next steps in this scenario depend on SEC Chair Gary Gensler’s response. The SEC has a few options:</p> 
<ul> 
 <li>Appeal or Compliance: The SEC can choose to appeal the court’s decision or comply with it. An appeal could be challenging given the court’s critical tone.</li> 
 <li>Approve Applications: The SEC could follow the court’s ruling and approve applications for a spot Bitcoin ETF. This includes allowing the listing of Grayscale’s ETF on NYSE Arca, as well as other pending applications from entities like Ark, Bitwise, and BlackRock.</li> 
 <li>Delay: The SEC also has the option to delay the decision, with a maximum time of 240 days to approve or deny applications. This could extend the decision-making process to January 10, 2024.</li> 
 <li>New Rationale: The SEC might devise new reasons to deny approval. The previous argument about market size no longer applies, so the SEC would need to develop alternative justifications.</li> 
 <li>Terminate Bitcoin Futures ETF: There’s a remote possibility that the SEC could halt the Bitcoin futures ETF, although this seems unlikely given recent approvals.</li> 
</ul> 
<h2 style="text-align: center;" id="conclusion">Conclusion</h2> 
<p>The court’s ruling in favor of Grayscale has created a significant shift in the Bitcoin ETF landscape. While optimism grows, the road to approval is complex and uncertain. The SEC’s response, along with the influence of the Federal Reserve’s policies, and the potential ripple effects on the cryptocurrency market make this a story worth watching closely. As Bloomberg’s Senior Macro Strategist noted, the inevitable approval of Bitcoin ETFs in the US draws closer, adding to the evolving dynamics of this scenario.</p>

Spot Bitcoin ETF Approval Nears: Grayscale’s Legal Victory

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