Today, the crypto world got one step closer to a Bitcoin ETF.
Grayscale won its lawsuit against the SEC, which was filed after the SEC denied Grayscale’s motion to convert GBTC (the Grayscale Bitcoin Trust) into a Bitcoin-backed ETF. A three-judge appeals panel overturned the SEC’s decision to deny Grayscale’s ETF proposal.
Now, let me be clear: This isn’t a green light for GBTC to automatically convert into an ETF. Nor will you be able to trade a Bitcoin ETF tomorrow. But it’s one step closer to what the industry has pushed for: greater accessibility for a wider swath of would-be crypto customers. Crypto investors know it, too — that’s why the price of Bitcoin jumped as much as 8%, on track for its biggest one-day rally since March.
The ruling is public, so it puts some pressure on the SEC to reconsider its position regarding Bitcoin-backed ETFs, which could open up a whole new avenue for demand in Bitcoin. Some users could feel comfortable investing in Bitcoin with a more familiar wrapper, while others would be able to incorporate Bitcoin ETFs into retirement accounts.
This isn’t just about Grayscale, either. There are seven Bitcoin-backed ETF proposals awaiting a decision from the SEC — including proposals from big institutions such as Blackrock, Fidelity, and WisdomTree — that could get different treatment after this court ruling.
So what does this mean for me?
Celebrate, but stay focused. Crypto investors have a right to be excited, but the fight isn’t over yet. For now, crypto prices may move more on macro factors — like interest rates and the health of the economy — than industry developments. And the rate environment isn’t that conducive to risky investments right now.
Remember the long-term story. Innovation strengthens the industry’s foundation. We’ve said for a while that crypto protocols need to prove their utility to survive this high-rate environment, and a Bitcoin-backed ETF could be a crucial piece of that puzzle. If you’re excited about the concept of crypto going mainstream, then you have a reason to feel encouraged today. Just don’t forget that daily ups and downs can still happen, even if the long-term story looks promising.
Industry change takes time. But it’s happening.
Data sourced through Bloomberg. Can be made available upon request.