SEC's Surrender: Bitcoin ETF on the Horizon, Experts Predict
The Securities and Exchange Commission (SEC) has seemingly conceded its battle against a Bitcoin (BTC) exchange-traded fund (ETF) as the deadline for an appeal passed on Friday.
With the agency's inability to appeal a key court ruling, many now predict that a Bitcoin ETF will soon make its way to the market, potentially as early as January 10, according to analysts at Bloomberg.
The SEC's decision not to challenge the August court ruling in the case of Grayscale vs. SEC is unlikely to be a result of a change of heart by Chair Gary Gensler.
Rather, it is believed that the agency's limited legal resources, coupled with the court's dismantling of the SEC's justification for denying the ETF, led to their decision to fold their cards.
Back in May, a US court ruled in favor of Ripple in the ongoing lawsuit brought by the SEC, claiming that selling XRP on exchanges in itself does not constitute an investment contract.
The ruling, issued by the District Court for the Southern District of New York, stated that the “offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.”
However, the federal judge also ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey Test.
Meanwhile, the specific company that will offer the ETF and the implications for the crypto markets, which have experienced a prolonged slump, remain uncertain.
Grayscale has been at the forefront of the legal battle to secure SEC approval for a Bitcoin ETF, a type of fund that has been available in Europe and Canada for years.
As the court proceedings started to favor Grayscale, major players in the financial industry, including BlackRock and Fidelity, also filed
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