In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has been ordered by a federal judge to re-review Grayscale’s bid for a spot bitcoin exchange-traded fund (ETF). This is a major development for the crypto industry, as it could pave the way for the first ever approval of a bitcoin ETF in the U.S.
Grayscale, the largest digital asset manager in the world, filed its application for a spot bitcoin ETF in April 2023, hoping to convert its existing Grayscale Bitcoin Trust (GBTC) into an ETF. GBTC is currently the largest publicly traded bitcoin investment vehicle, with over $40 billion in assets under management. However, GBTC trades at a significant premium or discount to the underlying bitcoin price, which creates inefficiencies and risks for investors.
A spot bitcoin ETF, on the other hand, would track the actual price of bitcoin and allow investors to buy and sell shares of the fund on a regulated exchange, just like any other stock or ETF. This would provide more liquidity, transparency and accessibility to the bitcoin market, as well as lower fees and expenses for investors.
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However, the SEC has been reluctant to approve any bitcoin ETF applications, citing concerns over market manipulation, fraud and investor protection. The SEC has rejected or delayed dozens of bitcoin ETF proposals over the years, including Grayscale’s. In August 2023, the SEC issued a preliminary denial of Grayscale’s bid, stating that it did not meet the requirements of the Securities Exchange Act of 1934.
Grayscale challenged the SEC’s decision in court, arguing that the SEC had applied an arbitrary and inconsistent standard to its application, and that it had failed to consider the benefits of a spot bitcoin ETF for investors and the crypto market. Grayscale also claimed that the SEC had violated its due process rights by not providing adequate notice or opportunity to respond to its concerns.
On October 23, 2023, U.S. District Judge Richard J. Leon ruled in favor of Grayscale, finding that the SEC had acted “arbitrarily and capriciously” in denying its application. Judge Leon ordered the SEC to re-review Grayscale’s bid within 60 days, and to provide a detailed explanation of its reasoning if it decides to reject it again.
Judge Leon’s ruling is a significant victory for Grayscale and the crypto industry, as it could set a precedent for other bitcoin ETF applicants and force the SEC to reconsider its stance on crypto regulation. It also shows that the courts are willing to intervene and hold the SEC accountable for its actions, which could encourage more innovation and competition in the crypto space.
While there is no guarantee that the SEC will approve Grayscale’s spot bitcoin ETF after re-reviewing it, the fact that it has been given another chance is a positive sign for crypto enthusiasts and investors. A spot bitcoin ETF could be a game-changer for the adoption and growth of bitcoin and other cryptocurrencies, as it would open up new avenues for institutional and retail participation, as well as enhance the legitimacy and credibility of the crypto sector.
Solana’s SCORCHING October
Solana, the blockchain platform that claims to offer fast, scalable and secure solutions for decentralized applications, has had a scorching October. The native token of the network, SOL, has surged more than 50% in the past month, reaching an all-time high on October 18.
The impressive rally has catapulted Solana to the fifth spot among the largest cryptocurrencies by market capitalization, surpassing the likes of Cardano, XRP and Polkadot.
What are the factors behind Solana’s stellar performance? Analysts point to several catalysts, such as the growing adoption of the network by developers and users, the launch of new projects and products on Solana, the expansion of the ecosystem’s infrastructure and partnerships, and the increasing demand for non-fungible tokens (NFTs) and decentralized finance (DeFi) applications.
One of the main drivers of Solana’s growth is its ability to handle a large volume of transactions at a low cost and high speed. According to Solana’s website, the network can process more than 50,000 transactions per second (TPS) with an average fee of $0.00025 and a confirmation time of less than a second. This makes Solana an attractive platform for building and running applications that require high scalability and performance, such as gaming, social media, streaming, e-commerce and more.
Another factor that has boosted Solana’s popularity is the launch of several innovative and successful projects on the network. For instance, Audius, a decentralized music streaming service that has over six million monthly active users and hosts artists like Skrillex, Deadmau5 and Diplo, migrated to Solana in October 2020. Since then, Audius has seen its user base and token value soar, as well as its integration with popular platforms like TikTok and Twitter.
Similarly, Star Atlas, a metaverse game that combines space exploration, strategy and NFTs, launched its public alpha version on Solana in September 2021. The game has attracted thousands of players and collectors who can buy and sell digital assets such as spaceships, planets and characters on Solana’s marketplace. Star Atlas has also partnered with celebrities like Snoop Dogg, Paris Hilton and Post Malone to create exclusive NFTs and events.
Moreover, Solana has witnessed a surge in demand for its NFTs and DeFi applications in October. According to data from DappRadar, Solana’s NFT sales volume reached $1.2 billion in October, up from $21 million in September. Some of the most popular NFT collections on Solana include Degenerate Ape Academy, Aurory, Solana Monkey Business and Thugbirds.
Additionally, Solana’s DeFi sector has grown significantly in terms of total value locked (TVL), users and transactions. According to DeFi Llama, Solana’s DeFi TVL reached $13.7 billion on October 17, up from $2.8 billion on September 1. Some of the leading DeFi protocols on Solana include Serum, Raydium, Saber and Mango Markets.
Finally, Solana has benefited from the expansion of its infrastructure and partnerships in October. For instance, Solana announced a $20 million fund to support projects in India, one of the fastest-growing crypto markets in the world. The fund aims to provide grants, technical support and mentorship to startups that build on Solana.
Furthermore, Solana partnered with several prominent platforms and organizations in the crypto space, such as Coinbase Custody, BitGo, Fireblocks, CoinShares and Pyth Network.
Solana has had a scorching October thanks to its fast, scalable and secure network that enables a variety of applications across different sectors. The network has also attracted a lot of attention from developers, users, investors and partners who see value in its technology and vision. As Solana continues to innovate and grow its ecosystem, it may pose a serious challenge to other blockchain platforms that aim to dominate the crypto space.