Opinion: Grayscale and SEC lawsuit ruling may play a role in the approval of spot Bitcoin ETF

Odaily Planet Daily News Nathan Geraci, president of the consulting firm The ETF Store, said that Grayscale Investments (Grayscale) filed a lawsuit with the SEC last year because the SEC refused to convert its flagship fund GBTC into a spot bitcoin ETF. Class applications are approved to play a role. In March, Grayscale filed an oral statement accusing the SEC of contradicting itself by allowing a bitcoin futures ETF but not a similar bitcoin spot product. Geraci said the SEC will await a final decision in the Grayscale lawsuit, which could come at any time, adding that it could be in the SEC's favour. “In this case, the SEC will have more excuses to keep rejecting spot bitcoin ETFs,” Geraci said. “Why should they know the outcome of that case before approving spot bitcoin ETFs? In my opinion, there is no reason for doing so." Geraci said that once the court trial results in Grayscale's favor, the key to spot bitcoin ETF approval will be how the SEC views the Coinbase supervision sharing agreement proposed by the ETF listing exchange. He believes Grayscale’s favorable ruling and Coinbase’s oversight sharing agreement “will be sufficient for the SEC to succeed in spot bitcoin ETF approval.” "However, the SEC doesn't need to make a final decision until January 2024, and I hope they take their time," Geraci added. (The Block)