Should the court rule in Grayscale’s favor there are several possible things that could happen next, according to Salm. “The commission could approve GBTC as a spot bitcoin ETF” as well as approve those spot ETFs from other companies that have been similarly rejected by the SEC.
“We think that’s really the right position,” he said.
However, Salm said, there is also the possibility the SEC could “go back and continue to disapprove GBTC as an ETF on some new basis.” Or the SEC could rescind previously approved bitcoin futures ETFs. Salm said that outcome may come to fruition if the agency takes the stance of treating all bitcoin ETF products the same.
However, it is unlikely that the SEC will take that route, “given the amount of disruption” it would cause and the “lack of investor protections” that would result, Salm said.
Source: Grayscale Chief Legal Officer: A Spot Bitcoin ETF Will Protect U.S. Investors, Consumers