- The SEC may delay Grayscale’s Bitcoin ETF approval due to anti-competition concerns.
- The company is the largest Bitcoin trust firm, with over $26 billion in assets under management.
- The SEC is concerned Grayscale’s significant Bitcoin trust fund holdings may prevent a fair launch.
Amid rising speculation that the U.S. Securities and Exchange Commision will approve a spot Bitcoin exchange-traded fund (ETF), Bloomberg analyst Eric Balchunas suggested that Grayscale’s ETF may be forced to wait behind others to launch.
In a post shared on X (formerly Twitter), Balchunas noted the size of Grayscale’s Bitcoin trust is a concern for the U.S. Securities and Exchange Commission (SEC). While he expects Grayscale’s bid to convert the trust into an ETF to succeed, he opined that it may not launch at the same time as spot Bitcoin ETFs planned by Grayscale’s competitors.
According to the analyst, the SEC is concerned about ensuring “fair competition at launch and sees GBTC as unfair because of their embedded aum/volume.” Grayscale is currently the largest Bitcoin trust company, with over $26 billion in assets under management.
On the other hand, Balchunas said fellow analyst James Seyffart believes GBTC will launch at the same time as others. Expert predictions suggest the SEC could grant approval to the numerous pending ETF applications in the coming weeks.
Meanwhile, a Bitcoin ETF approval is one of the things crypto analysts expect to drive an anticipated bull market in 2024. Furthermore, experts predict the approval and the halving could push Bitcoin’s price to $100K by 2024 end.
Speculation around an approval has already inspired a market resurgence that sent major cryptos to yearly highs. In particular, the leading cryptocurrency Bitcoin notched a new annual high of $44K.
However, since hitting this high, the BTC has struggled to maintain a stable price. At present, Bitcoin is exchanging hands at $42,884, following a 4.60% rise in the previous 24 hours, CoinMarketCap data reveals. Additionally, the overall crypto market saw a 3.73% increase in the same period to sit at $1.61 trillion.
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