The SEC will reportedly not appeal the court’s ruling on the Grayscale Bitcoin ETF.

The U.S. Securities and Exchange Commission reportedly has no plans to appeal a recent court ruling in favor of grayscale investments. The ruling requires the SEC to review the company's position on the Bitcoin (BTC) exchange-traded-currency application.

Benzinga (and others) Reuters reports that the SEC will not appeal the Greyscale case. pic.twitter.com/yd9BBtRwv5

— Eric Balchunas (@EricBalchunas) October 13, 2023

The SEC's decision not to appeal the D.C. Circuit Court of Appeals decision was highlighted in an Oct. 13 report from Reuters, which cited “a source familiar with the matter.”

Bloomberg analysts expect the SEC will not appeal to the Supreme Court, but stressed that this does not necessarily mean the grayscale application will be approved.

If the reports are true, the SEC will need to follow the court's August order and review Greyscale's application to convert the Greyscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

Reuters reports that the appeals court is expected to issue an order detailing how the ruling should be “implemented” by the SEC.

Commenting on the developments, Bloomberg ETF analyst James Seifert said via X:

“I don't think they will appeal to the Supreme Court. Discussions between Greyscale and the SEC should begin next week. I'm hoping to get more information on next steps next week or the week after?

1. Done deal I guess if this is correct. No en banc application

2. No, I don't think they will appeal to the Supreme Court either.

3. Discussions between Greyscale and the SEC should begin next week. I'm hoping to get more information on next steps next week or the week after? https://t.co/2EayzqeKGq

— James Seyff (@JSeyff) October 13, 2023

Going forward, Seifert suggested that we'll probably find out “in the next week (or two)” what the SEC's deadline is for approving or denying the Greyscale spot BTC ETF application.

If the SEC rejects the application, Grayscale could appeal that decision, further dragging out the process.

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As of now, around seven Bitcoin ETF applications are pending before the SEC awaiting a decision from the regulator.

In a separate earlier X post on October 13, Seifert reiterated his opinion that there is a 90% chance that a spot Bitcoin ETF application will be approved by January 2024, specifically the application from Cathy Wood's ARK Invest.

Over the last couple of weeks I've gotten a lot of questions regarding my view on Spot #Bitcoin ETFs. This is the first part of my memo yesterday with Eric Balchunas.

TLDR: Our view hasn't changed much pic.twitter.com/Htsi3n2XxV

— James Seyff (@JSeyff) October 13, 2023

Eric Balchunas, senior ETF analyst at Seifert & Bloomberg, also previously indicated there was a 75% chance the application would be approved by 2023.

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