Balchunas believes Grayscale's case may positively influence SEC's decision on BlackRock's application.
Bloomberg's senior ETF analyst, Eric Balchunas, predicts that the chances for a global investment management corporation BlackRock to get its spot Bitcoin Exchange Traded Fund (ETF) approved stands at 50%.
This prediction follows after Elliott Stein, a senior litigation analyst at Bloomberg Intelligence, raised the odds of Grayscale winning the lawsuit against the SEC to 70%.
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Balchunas suggests that following the lawsuit with Grayscale, the SEC may view BlackRock's ETF proposal more positively.
This could allow the regulator to maintain credibility by granting approval to an ETF from a well-established traditional finance firm like BlackRock instead of Grayscale.
For the past year, Grayscale and the SEC have been engaged in legal discussions over Grayscale's appeal against the securities regulator's rejection of their application in June 2022.
In his response to the ongoing lawsuit against SEC and Grayscale, Elliott Stein stated:
Grayscale has a 70% chance of winning its lawsuit against the SEC over the company’s bid to convert the Grayscale Bitcoin Trust (GBTC) to a Bitcoin ETF, we believe.
Stein's confidence in Grayscale rose from 40% to 70% after the conclusion of the oral arguments from both parties. Bloomberg Intelligence analyst reasoned this assumption on the judges’ lines of questioning, which seemed to favor Grayscale. Bloomberg anticipates a ruling on this matter by August.
The SEC's approval of Bitcoin ETF applications has been a primary concern for the industry. Alongside BlackRock, firms like Invesco, WisdomTree, and Valkyrie seek the SEC's green light.
The race for approval of a Bitcoin ETF is heating up, with BlackRock and Grayscale leading the pack. The outcome of these cases could significantly impact the digital asset market by opening it up to firms managing trillions of dollars.
