Today the Court of Appeals ruled that the SEC was wrong to block the Grayscale Bitcoin Trust from converting to an exchange traded fund (ETF). That’s because the SEC had already allowed ETFs based on Bitcoin futures and the prices correlate 99.9% of the time.
However, the ruling is not binding for the next seven days which leaves time for the SEC to ask for the case to be reheard. Three Appellate judges made up the deciding panel, but the SEC could request the case be heard before all the judges.
Grayscale’s Bitcoin Trust has been notorious for its discount to market prices, hence the desire to convert to an exchange traded fund (ETF) which will be more liquid as it’s not limited to accredited investors. The trust price reached almost a 50% discount in January and improved to 44% below spot prices in mid-June when BlackRock filed for a Bitcoin ETF. Since then the discount has declined to around 25%.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
