Aug 29, 2023

A federal court ruled that the U.S. Securities and Exchange Commission (SEC) must review its rejection of Grayscale Investments' attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.

Video transcript

An appeals court ruled just today that the A the SEC must review Gray Scales ETF bid after they were previously rejected. It's being seen as a victory in the prospects for getting a spot. Bitcoin ETF into the marketplace in the US and the market is responding enthusiastically, Bitcoin surge on the news uh adding quite a bit of value and now we're seeing some further chatter about what this means for the prospects again of the long awaited Bitcoin spot ETF. This Note Gray Scale is a sister company of Coin Desk. They share ownership from digital Currency group, but we're gonna talk about it. Gloves off. No holds barred. Anyway, I'm gonna toss this straight to Will Bitcoin Bitcoin ETF News. This is, this is a potentially a big one. Wait, Wendy. Did you have your hand up? I was so distracted. No, I just, I would just get to be very unprofessional on this show because I only have this show and the next one. So sorry. Control. I'm so excited you guys. This is the absolute best news ever. The fact that we continue to see the SEC take these massive LS is music to my ears, I really, really feel that they have just been so predatory in their actions and wanting to litigate instead of give some sort of guidelines, help these honest entrepreneurs know what they're supposed to be doing and know what they can't do. Like to me that's just super problematic behavior. We should want to support entrepreneurs, we should want to guide people to in the right direction. And more importantly, we should want to build back the American economy better. And I think with all of these massive wins, the crypto industry is seeing things hopefully will get better. All right. Well, you could take it now guys, we did it, we did it, we got to go. It's Taco Tuesday, Bitcoin, Bitcoin. No, we still, that's true. We can be super unprofessional. This does not mean the ETF is going through now. It just means that the SCC has to go back and review the application again and they have to give a actual opinion. There's a few lawyers on crypto Twitter talking about this this morning. What does this actually mean? What did the judge actually say? And they basically stated that the SEC did not have a good basis for making its past decision. And now they need to go back to the books re look at the application and come up with a better decision whether that means that this is going to be approved or not. We still have to wait. This probably means it's going to be approved because there's a lot of political pressure. Now on the SEC, after a judge took a look at this and said, you know what guys, you didn't do your homework, you should have let this pass or you should have put some more thought into why you didn't want this go through and you didn't. So we're kicking it back, go study the books. Maybe we'll get something out of this. Now, of course, what's on the line? A lot of ETF S are out there. A lot of people are, you know, lining these things up. I'd say there's about a half dozen plus ETF S that are uh possible to move forward over the next 180 days or so. And if that opens up, that means like a lot of mom and pop retail investors can't get into the Bitcoin market for the first time because, you know, they probably weren't comfortable touching Bitcoin in other ways. There's lots of different ways to get exposure to Bitcoin. There's lots of different ways of purchasing financial assets, but an ETF itself means that you can put Bitcoin into your 401k into any sort of uh trust with like a Schwab or fidelity, something like that. That means that maybe coin go up, who knows? Little speculation. There could have some more apathy because the crypto markets right now are not great. But a lot of people in the crypto industry are looking at this and saying like this could be our salvation from the depths of crypto winter, Jen, the salvation. I look at this and so I look at this court ruling in favor of gray scale and the partial ruling in favor of ripple. And I think that there's a glimmer of hope, right? I think that these two cases show us that maybe this clarity we're seeking from the sec we are not going to get, but some of these decisions are going to be made in the court and some of them may lead to precedent setting decisions down the line or they may at least force the sec his hands so that we can get some more clarity. So good news all around. I want to point to one of the lawyers who have been commenting on this, who has been commenting on this on Twitter this morning, Jake Chervinsky, who's the Chief Policy Officer at the Blockchain Association. He said that it's rare for a Federal Circuit Court to make a decision like this and said that there are two ways that this could possibly go, the SEC could come back and just provide another reason for rejecting it or they could say their hand was forced by the court. And so they're going to do it, but it's not because they want to do it, but they were, but they were forced by a judge. And so it will be interesting to see which way they go, I think it's important to note that an ETF has not been approved, but I think it is definitely a step in the right direction. Yeah, there's a lot of speculation that once one gets approved several will be approved. Right. So we have the Black Rock one, we have a bunch of other ones. I forget all the names, but there's a ton of uh Bitcoin spot ETF proposals that are sitting uh for rejection or approval. And I think the, you know, the uh the ETF Watchers out there in the world have said that maybe when, when one gets over the finish line, others will likely also get over the finish line such that the SEC isn't seen as seen as picking a winner and giving an unfair advantage to one applicant over the others. So I think that's why there is sort of this buoyant sentiment across uh the space as a whole. This isn't necessarily just a win for a gray scale. It's potentially a win for others such as Black Rock and others in the space who are looking to offer this product to again, mom and pop investors who want it in their brokerage account and don't want to have to deal with um the nonsense of dealing with the crypto itself. So that I think is why that sentiment is out there, why the market has seemed to has reacted pretty positively Bitcoin is up about 5% on the news, uh, a nice little surge. Uh, given that Bitcoin has been pretty flat around 26 K for the last little while now. So, interesting to see. Interesting to see what's going to follow this. But yeah, definitely the SEC may have taken an L on this one while they fight other fights and may rack up dubs on those ones.

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