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  • The duo of BlackRock and Grayscale are closer to spot Bitcoin ETF approvals.
  • The latest development and the SEC’s change in stance have fueled optimism on Bitcoin ETFs.

There has been significant progress in the spot Bitcoin (BTC) Exchange Traded Fund (ETF) applications of both Grayscale and BlackRock. In a new development, the Securities and Exchange Commission (SEC) has been mandated by a United States Court to reevaluate Grayscale’s BTC ETF application.

At the same time, the proposed iShares spot Bitcoin ETF for leading investment asset management firm BlackRock has found a place on a Nasdaq-affiliated clearinghouse. 

Markedly, the United States Court of Appeals for the D.C. Circuit issued a mandate for the SEC to reevaluate Grayscale Investments’ application for a spot Bitcoin ETF based on a previous court ruling. The said ruling highlighted the similarities between Grayscale’s proposal and the already approved Bitcoin futures ETFs. In light of this comparison, the court decided that Grayscale’s application is also worthy of approval. 

Additionally, the judge cited that the court’s ruling is in line with its perspective on Mandate as the United States Court of Appeals. This comes after the regulator decided against pursuing an appeal of the court’s critique regarding its initial rejection of Grayscale’s bid to convert GBTC into a Bitcoin ETF. 

BlackRock has secured a position on the Depository Trust & Clearing Corporation (DTCC), a primary clearing and settlement organization that plays a crucial role in launching an ETF into the market. In the cryptocurrency industry, such listing is equated to a significant endorsement, especially after considering the SEC’s reservation towards a spot Bitcoin ETF in the past. Eric Balchunas, a Bloomberg ETF analyst, emphasized that the DTCC listing is a major milestone in the wait for approval.

Meanwhile, Balchunas described the ticker ($IBTC) adopted for the iShares spot Bitcoin ETF as a fairly bland choice. However, he thinks that the ticker, which he described as “zzzzz”, is important to attract more traditional investors to the leading crypto BTC. 

Bitcoin ETF Approval Strongly Expected

Both positive developments are pointing at a breakthrough in the area of spot BTC ETF approval. Many experts are also confident that the approval might even come before the end of this year, more like a Christmas gift. Mike Novogratz, the Chief Executive Officer of Galaxy Digital noted that the latest legal challenges have fixed the SEC in a precarious position that necessitates a reconsideration of its stance about BTC ETFs.

Coinbase Chief Legal Officer Paul Grewal cited the legal setbacks that the SEC has faced in recent times as enough reason for the regulator to concede to the requests made by the different interested companies including BlackRock, Invesco, Valkyrie, Fidelity, and others.

Read More: Coinbase’s Legal Chief: SEC Must Approve BlackRock’s Bitcoin Spot ETF

He also reiterates that the SEC’s decision not to contest the court’s ruling on GBTC by the crucial deadline, informs the possibility of a fast-approaching approval. Grewal is optimistic that more spot Bitcoin ETF applications and approvals will be doled out once the SEC greenlights the present applications.

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