Approval for Grayscale’s Bitcoin ETF by the SEC could face postponement owing to anti-competition concerns. As the foremost Bitcoin trust firm, managing assets surpassing $26 billion, Grayscale’s considerable holdings in Bitcoin trust funds have raised apprehensions at the SEC regarding the potential obstruction of a fair launch.
As speculation grows about the approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission, Bloomberg analyst Eric Balchunas has indicated that Grayscale’s ETF might need to bide its time and await its turn for launch behind other contenders.
In a post shared on X (formerly Twitter), Balchunas pointed out that the sheer magnitude of Grayscale’s Bitcoin trust is raising concerns for the U.S. Securities and Exchange Commission (SEC). Although he foresees approval for Grayscale’s attempt to convert the trust into an ETF, he suggested that it might not launch concurrently with spot Bitcoin ETFs planned by Grayscale’s competitors.
To be clear we agree conversion happening, we just differ on timing. I think they will have to wait (bc SEC hellbent on fair competition in launch and sees GBTC as unfair bc of their embedded aum/volume) while James thinks they will launch with others. Sushi lunch bet in effect.
— Eric Balchunas (@EricBalchunas) December 19, 2023
As per the analyst, the SEC is focused on guaranteeing “equitable competition at the launch and perceives GBTC as inequitable due to its integrated assets under management/volume.” Grayscale presently holds the position of being the largest Bitcoin trust company, managing assets exceeding $26 billion.
Conversely, Balchunas conveyed that fellow analyst James Seyffart is of the opinion that GBTC will initiate its launch simultaneously with other contenders. Forecasts from experts indicate that the SEC may potentially approve several pending ETF applications in the upcoming weeks.
In the meantime, the approval of a Bitcoin ETF stands out as a key catalyst that crypto analysts anticipate will propel an expected bull market in 2024. Additionally, experts foresee that the combination of this approval and the occurrence of the halving could propel Bitcoin’s price to reach $100,000 by the end of 2024.
Anticipation of approval has already sparked renewed market activity, propelling major cryptocurrencies to reach their highest levels of the year. Notably, Bitcoin, the primary cryptocurrency, achieved a new yearly high, reaching $44,000.
Nevertheless, after reaching this peak, Bitcoin has encountered challenges in sustaining a consistent price. Currently, Bitcoin is trading at $42,884, reflecting a 4.60% increase in the past 24 hours, as reported by CoinMarketCap. Furthermore, the overall cryptocurrency market has observed a 3.73% rise in the same timeframe, reaching a total valuation of $1.61 trillion.
