- Bloomberg analyst James Seyffart thinks Grayscale may win the lawsuit in opposition to the SEC over its GBTC ETF software.
- Nevertheless, Seyffart indicated {that a} win wouldn’t essentially imply {that a} spot Bitcoin ETF could be allowed.
- Grayscale CEO Michael Sonnenshein beforehand predicted a verdict within the case by fall 2023.
James Seyffart, ETF analysis analyst for Bloomberg Intelligence, believes {that a} victory for Grayscale Investments in its pending lawsuit in opposition to the U.S. Securities and Alternate Fee (SEC) will not essentially enable the agency to begin issuing bonds. Money bitcoin exchange-traded funds (ETFs). after changing present Grayscale Bitcoin Belief (GBTC) shares.
Seyffart lately appeared on a podcast hosted by What Bitcoin Did. The Bloomberg analyst shared his views on the continuing authorized battle between the Digital Forex Group subsidiary and the highest securities regulator in the US. The lawsuit was filed in June 2022 after the SEC denied Grayscale’s request to transform GBTC right into a spot Bitcoin ETF.
The analyst stated there was a robust probability that the SEC would lose the lawsuit. The prediction was in keeping with a Bloomberg notice Seyffart contributed to earlier this yr. THE noticewritten by Bloomberg senior litigation analyst Elliot Stein famous that the courtroom would seemingly overturn the SEC’s order dismissing Grayscale’s spot BTC ETF.
Bloomberg Intelligence believes that Grayscale has a 70% probability of profitable. A ruling on the matter may be anticipated within the second or third quarter of 2023. Nevertheless, the wording of the ruling will dictate whether or not the courtroom offers the SEC a gap to disclaim the ETF’s request on totally different grounds or the compels you to simply accept it.
Talking following a positive consequence for Grayscale, Seyffart famous: “The SEC would possibly then simply deny for different causes…So Grayscale would possibly win the case and nonetheless not have the ability to convert to an ETF. .”
Earlier this yr, Grayscale CEO Michael Sonnenshein appeared on a What Bitcoin Did podcast. Requested in regards to the timing of a verdict, Sonnenshein revealed that he anticipated a choice on the matter as early as autumn 2023, that’s to say someplace between Q2 and Q3.
