Speculations are going around that Grayscale, a trusted authority that invests in digital currency and manages cryptocurrency assets, may win versus the US Securities Exchange Commission (SEC). Crypto enthusiast Andrew recently tweeted that Grayscale could be poised to win its case against the SEC on March 7th, turning $GBTC into a Bitcoin ETF.
UPDATE: More chatter that @Grayscale could be poised to win its appeal/case against the SEC on March 7th; turning $GBTC into a proper spot #Bitcoin ETF.
**legal minds believe their brief is powerful and the court may be prone to pushing back on regulatory overreach.
— Andrew (@AP_Abacus) February 20, 2023
Grayscale filed a lawsuit against the SEC for denying GTBC’s conversion to spot Bitcoin ETF after they claimed it did not meet the standards set to prevent fraudulent activities and protect investors. In the firm’s defense, that was the only option they were left with to prove the decision was not right. They swung into action immediately with claims that the regulator rejecting applications for spot Bitcoin ETFs after bitcoin futures were approved was arbitrary
As they await the final ruling, there is hope that things may work out positively for Grayscale. According to Andrew, legal minds believe their brief is powerful, and the court may be prone to pushing back on regulatory overreach. They are also confident that if Grayscale were to lose, they could consider taking the case to the Supreme Court, where they would have a greater chance of winning.
Grayscale having a chance to win the lawsuit against the SEC has been the topic on the minds of the members of the crypto community, as they have several hot takes on the issue. Many agree that the SEC would have a hard time arguing against Grayscale’s brief. From the look of things, the SEC has blatantly discriminated against GBTC. Some believe that there is nothing more bullish than a Grayscale win as it would call for more fresh inflows, regulatory clarity, and 850K relieved $GTBC holders who will have their capital doubled.
Nevertheless, Grayscale’s GTBC discount is at negative 46.02% despite the rave about the case against SEC. In the past few weeks, Bitcoin Trust shares have been selling at a discount of over 40%. The firm has a total of $15.77 billion in holdings at a price of $12.2.
Although a decision regarding the lawsuit has yet to be reached, Greyscale has maintained a positive outlook during these tough times, and they are confident that things will work out in their favor. In addition to that, they are backed by supporters who are optimistic about the coming hearing. So, will GBTC become a Bitcoin ETF? That will be decided in the next few weeks.