Bitcoin Surges 4% as U.S. SEC Nears Talks with Grayscale for Spot ETF Conversion

• Bitcoin has experienced a nearly 4% surge in the last 24 hours, inching closer to $37,000.
• The U.S. SEC talks with Grayscale regarding the potential conversion of the GBTC trust into a spot Bitcoin exchange-traded product (ETF).

Bitcoin, the leading cryptocurrency, has witnessed a significant surge, nearly hitting the $37,000 mark, following strong speculations around the potential conversion of Grayscale’s trust product, GBTC, into a spot Bitcoin exchange-traded product (ETF). This development has spurred notable excitement in the market, particularly considering the anticipation of significant institutional funds entering cryptocurrency.

The anticipation of a Bitcoin spot ETF gained momentum as analysts from Bloomberg ETF research unveiled a possible eight-day window for the SEC to approve 12 spot Bitcoin ETF applicants. This possibility could be initiated as early as November 9th, projecting a considerable 90% chance of a Bitcoin spot ETF approval by January.

Recent reports have indicated that the U.S. Securities and Exchange Commission (SEC) has initiated discussions with Grayscale Investments. The talks aim to delve into the complexities of Grayscale’s request to convert its GBTC trust into a spot Bitcoin exchange-traded product. This effort has garnered attention, with sources suggesting an active engagement between Grayscale and SEC divisions responsible for approving such conversions.

Grayscale’s Battle with SEC and the Court’s Ruling

The discussions between Grayscale and the SEC mark a pivotal phase in the potential approval process of Grayscale’s ETF application. Grayscale, a prominent player in the crypto investment landscape, is familiar with the SEC due to its existing Grayscale Bitcoin Trust. However, the SEC initially denied the company’s endeavor to introduce an ETF directly holding cryptocurrency assets, prompting a legal dispute.

Following a legal battle, a federal court panel overturned the SEC’s rejection, deeming it “arbitrary and capricious.” This ruling necessitated the agency to rescind its denial, rekindling the spotlight on Grayscale’s ETF application.

As of the latest market update, Bitcoin is trading above $36,600, witnessing a nearly 4% surge in the last 24 hours, as per CoinMarketCap. This surge aligns with the brewing anticipation and excitement around the potential ETF approval and institutional investment prospects in cryptocurrency.