BlackRock And Grayscale are on track for the approval of the Bitcoin ETFs by the Securities and Exchanges Commission (DRY). And if these two behemoths get a green light from the American financial policeman, it could well game changer in cryptocurrency markets.
A turning point in the race for Bitcoin ETFs
The industry of Bitcoin ETFs is in full swing, with big firms like Fidelity, Invesco, Wisdom Tree and Valkyrie following suit. BlackRock, a $10 trillion asset management firm, pending SEC approval. However, investment management leader BlackRock and Grayscale topped the list. According to Eric Balchunas, senior ETF analyst at Bloomberg, BlackRock has a 50% chance of getting its Bitcoin ETF approved cash, while Grayscale would have a 70% chance of winning its lawsuit against the SEC.
Analyst says SEC may look favorably on BlackRock’s ETF demand, seeing a way to save face by endorsing an ETF from a traditional “adult” finance company and trusted rather than Grayscale. Since Grayscale appealed the SEC’s decision to deny its request in June 2022the two parties engaged in a kind of legal ping-pong.
Impact of the verdict on the digital asset market
If the SEC were to approve applications from companies like JPMorgan, Morgan Stanley, Goldman Sachs, BNY Mellon and Bank of America, it would open up the market for digital assets to companies which, in total, jointly manage $27 trillion in assets.
While the decision on the Grayscale case is pending, GBTC soared over 134% in 2023 to $19.47, its highest price since May 2022.
Despite this positive development, it should be noted that, like most of the crypto market, the GBTC fell by more than 65% against its ATH. According to Bloomberg’s Elliott Stein, the SEC’s final decision is expected next August.
Sources: DailyHodl; Twitter