Federal appellate court rules in favor of Grayscale

Discussion in 'Crypto Assets' started by BMK, Aug 29, 2023.

  1. BMK

    BMK

    A federal appeals court has overturned the SEC's decision, in which the SEC denied Grayscale's application to establish a Bitcoin spot ETF.

    Here's the Bloomberg article:

    https://tinyurl.com/BB230829GBTC

    and here's Matt Levine's column:

    https://tinyurl.com/BB230829Levine

    These are gift links that expire in seven days. You do not need a Bloomberg account to read these articles.
     
  2. mervyn

    mervyn

    But why ETF? If one wants to bitcoin, he/she can buy it directly.
     
    Drawdown Addict likes this.
  3. Overnight

    Overnight

    What would the difference be between that and their Bitcoin Trust the have now?
     
  4. BMK

    BMK

    The current GBTC product does not own Bitcoin. It only owns Bitcoin futures.
     
  5. Tokenz

    Tokenz

    It's for institutions, and also any retailers afraid of buying it from a crypto exchange


    This is a big win for crypto. It's unclear why gary gensler is so against crypto, (Probably because he is working with big banks) but he is getting put in his place by making himself look like a fool in the courtroom. I am enjoying every minute of this.

    "First they ignore you, then they laugh at you, then they fight you, then you win..."
     
    johnarb likes this.
  6. mervyn

    mervyn

    institutions do not buy unless the laws and rules are clear. they have committees you know. it is for retail, they collect fees.
     
  7. Tokenz

    Tokenz

    Exactly, and an ETF approval would mean clear rules and laws, exactly what I just said...
     
  8. mervyn

    mervyn

    no, the underlying asset is not, not security, not commodity.

    futures is different. in futures market you can make a reference asset in horse hit .
     
    traderjo likes this.
  9. traderjo

    traderjo

    Underlying asset is lot of hot air .. :banghead:where as true futures are either a real commodity a real value of a business ( Shares Index) or a currency Future
     
  10. Specterx

    Specterx

    An ETF opens up access to gigantic oceans of capital from institutions and fuddy-duddy HNW individuals, who are not early adopters. The former especially often have restrictions on what they can buy, which may not include "digital assets" but sure does include ETFs.

    It's happened before. Gold bugs were a thing for decades, and anyone could buy gold through custody services or at the local pawn shop. Yet after spending 24 years between 300 and 500, the launch of GLD in late 2004 was followed (about a year later) by gold rising 400% in six years.

    The same outcome is of course not guaranteed, but an ETF will with 100% certainty lead to the BTC price being higher than otherwise. The main issue with BTC is that, unlike gold and its 24-year basing process, it's far from clear that a durable bottom has been reached in the current bear market. Thus "higher than otherwise" might mean it bottoms at 12k instead of 6k, or 8k instead of 4k.
     
    #10     Aug 30, 2023