In the most modern episode of Unchained, Bloomberg analyst James Seyffart advised that the lawsuit between Grayscale and the U.S. Securities and Change Fee (SEC) over the company’s denial of Grayscale’s Bitcoin space ETF could change into beside the purpose – if one of many fresh Bitcoin space ETF purposes is approved.

The SEC has many times blocked Grayscale’s strive to convert its Bitcoin Belief (GBTC) into a space Bitcoin Change Traded Fund (ETF).

Alternatively, the scheme back could alternate with the fresh ETF purposes from TradFi giants equivalent to BlackRock, Invesco, WisdomTree, and Valkyrie.

“If this form of is approved, then Grayscale would theoretically be in a blueprint to convert GBTC into an ETF,” rendering its lawsuit in opposition to the SEC moot, Seyffart explained.

Seyffart says the SEC’s denial of Grayscale’s utility used to be not instruct to Grayscale however it used to be on myth of no Bitcoin space ETFs exist yet. Previously, the regulatory physique expressed concerns about the underlying space marketplace for Bitcoin, questioning whether or not it is sufficiently regulated or has surveillance-sharing agreements in dwelling.

Seyffart posits that the SEC could approve a Bitcoin ETF earlier than a decision is made in Grayscale’s lawsuit. This scoot could doubtlessly terminate the SEC from shedding the case in federal court docket. Seyffart explained the functionality strategy of the SEC. If Gary Gensler’s company manages to approve a Bitcoin ETF, such because the one proposed by BlackRock, it may perchance most likely then label this to the courts as evidence of a loyal path to approval. This may perchance doubtlessly pave the manner for Grayscale to convert its Bitcoin Belief into an ETF, finally on myth of BlackRock managed to navigate the direction of efficiently.

Learn more: The Bitcoin ETF Is a Double-Edged Sword

Despite the ongoing good battle and the uncertainty surrounding approving a Bitcoin space ETF, Seyffart stays optimistic about Grayscale’s probabilities. He acknowledged: “I articulate in a roundabout blueprint when this form of gets approved, GBTC will convert to an ETF.”